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This study rigorously investigates the intricate dynamics between Corporate Social Responsibility (CSR), quantified through Environmental, Social, and Governance (ESG) scores, and financial performance (FP), measured via the return on assets (ROA) and return on equity (ROE), within the UK banking sector. Our analysis is based on a comprehensive dataset from Bloomberg. This research encapsulates data from 32 banks publicly listed on the London Stock Exchange over a six-year span from 2017 to 2022. Employing panel data regression models while controlling leverage and bank size, we delve into the relationship between banks' CSR engagements, as reflected in their ESG scores, and their financial outcomes. Our findings indicate a negative correlation between the ESG score and both the ROA and ROE, suggesting that elevated CSR commitments may inversely impact short-term financial returns. This finding not only challenges prevailing narratives within the sector but also fosters a crucial discourse on the balance between ethical banking practices and profitability. The implications of this research study are manifold, extending to policymakers, banking executives, and investors, suggesting a revaluation of CSR strategies in alignment with long-term value creation and sustainable banking. This study not only enriches academic discourse on CSR within the financial sector but also serves as a beacon for future inquiries into the evolving landscape of responsible banking, advocating for a nuanced understanding of CSR's role in shaping the financial and ethical contours of the banking industry. [ABSTRACT FROM AUTHOR]

We exploit a U.K. government-sponsored product and provide evidence on shared equity mortgages. The analysis shows how the interaction of house price growth and leverage regulation promotes product adoption. Following an increase in the equity limit, households use the additional financing to buy more expensive properties rather than reduce leverage. Equity used as a complement to debt is likely less beneficial for financial stability than when used as a substitute. Equity borrowers are less likely to change lenders when refinancing their senior debt. Finally, we measure the equity provider returns, which are affected by selection and undervaluation at repayment. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Corporate governance remains the focus of current research and a concept that continues to evolve to meet the needs of business managers. Faced with the need for companies to cope with a world characterized by perpetual change and successive economic crises (Prowse in Revue d'économie financière 31:119–158, 1994), the identification of the results of the implementation of good governance mechanisms in the structure of the management of companies on financial performance remains a necessity that helps managers and researchers specialized in management sciences and financial accounting to have a better visibility on the importance of corporate governance. It should be mentioned that the economic environment and the characteristics of the sectors of activity of the companies remain a relevant criterion in the study of the relation between the governance of the companies and their financial performance. In this sense, we have tried through this research work to study the impact of the implementation of effective corporate governance on the financial performance of 160 companies in the UK between 2005 and 2018 while taking into account the specificity of the business sectors. Through our study, we used multivariate regressions based on FGLS models while dividing our sample to several clusters. As a result, we found that the implementation of good corporate governance leads to the improvement of the financial performance of companies measured by the return on equity. As a motivation, it must be said that this study can be of major importance for future studies that want to make comparisons on the sectoral and temporal level. Indeed, this study gives the possibility for future research work to make comparative studies based on comparisons for different sectors of activity in the UK before and after the Brexit and also after the COVID 19 period. [ABSTRACT FROM AUTHOR]

The digital twin (DT) research field is experiencing rapid expansion; yet, the research on industrial practices in this area remains poorly understood. This paper aims to address this knowledge gap by sharing feedback and future requirements from the manufacturing industry. The methodology employed in this study involves an examination of a survey that received 99 responses and interviews with 14 experts from 10 prominent UK organisations, most of which are involved in the defence industry in the UK. The survey and interviews explored topics such as DT design, return on investment, drivers, inhibitors, and future directions for DT development in manufacturing. This study's findings indicate that DTs should possess characteristics such as adaptability, scalability, interoperability, and the ability to support assets throughout their entire life cycle. On average, completed DT projects reach the breakeven point in less than two years. The primary motivators behind DT development were identified to be autonomy, customer satisfaction, safety, awareness, optimisation, and sustainability. Meanwhile, the main obstacles include a lack of expertise, funding, and interoperability. This study concludes that the federation of twins and a paradigm shift in industrial thinking are essential components for the future of DT development. [ABSTRACT FROM AUTHOR]

We study the wealth distribution of UK households through a detailed analysis of data from wealth surveys and rich lists, and propose a non-linear Kesten process to model the dynamics of household wealth. The main features of our model are that we focus on wealth growth and disregard exchange, and that the rate of return on wealth is increasing with wealth. The linear case with wealth-independent return rate has been well studied, leading to a log-normal wealth distribution in the long time limit which is essentially independent of initial conditions. We find through theoretical analysis and simulations that the non-linearity in our model leads to more realistic power-law tails, and can explain an apparent two-tailed structure in the empirical wealth distribution of the UK and other countries. Other realistic features of our model include an increase in inequality over time, and a stronger dependence on initial conditions compared to linear models. [ABSTRACT FROM AUTHOR]

Access to financing is crucial for farmers to ensure competitiveness and to facilitate change. A better understanding of how farmers can access funds could help farmers to remain profitable and to adopt more sustainable farming practices. However, most of the academic literature discussing agricultural financing depicts farmers' access to funds as impersonal and universal – emerging from the idea of "optimal financial behaviour". This paper takes a different approach and introduces the concept of "financial subjectivities" to show how financial markets are constructed as locally embedded reinterpretations of the financialisation of agriculture that guide local agro-financial relations. We examine financial subjectivities in Latvia, Denmark and the UK respectively to understand how stakeholders co-constitute contextually embedded relations between farmers and banks and to assess processes of agro-financial relations in specific national contexts. The cases illustrate different relationships between banks and farms. In Latvia, agricultural crediting has developed comparatively recently and is heavily supported by government intervention; in Denmark, agriculture has undergone a period of financial crisis, and farmers are struggling to refinance and remain profitable; meanwhile, in the UK, relations between farmers and banks are well established but increasingly strained as agricultural producer returns on investment yield less profit. Each case thus reflects historical development trajectories and the regulatory engagement of agro-financial relations, asserting the importance of embedding analysis of agricultural financing in specific socio-political contexts. • Most farmers do not have resources to make the investments needed to ensure the competitiveness of their farm. • Financialisation is a global phenomenon which is maintained by actors that are global in their nature and foci. • Financial relations are locally embedded and locally reimagined. • Financialisation has to be renegotiated in diverse contexts as part of a broad set of development trajectories. • Financial subjectivities are locally embedded reinterpretations of the financialisation. • Banks play an important role in facilitating a shift towards more sustainable models of farming. [ABSTRACT FROM AUTHOR]

This paper is concerned with the distributional effects of the deregulation and privatization of essential services in Britain since the 1980s, based on a cross-sector study of water, energy and local bus transport. Our approach locates end users within the structures and processes, and prevailing narratives that underpin both production and consumption. This framework highlights the ways that the provisioning of these vital services is contested, contradictory and underpinned by power relations. We show that, at one end, investors in these sectors have made generous returns on their investments but their methods of profit maximization are often not in the public interest. Meanwhile these profits are financed by end users' payments of bills and fares. Many lower-income households face challenges in terms of affording, and even accessing, these essential services. Regulation has failed to provide adequate social protection. We argue that adverse social outcomes emerge from systemic factors embedded in these modes of provision. A narrative of politically-neutral, technocratic solutions belies the underlying contested nature of privatized monopolistic shared essential services. Moreover, a policy preoccupation with markets and competition obscures the inequality embedded in the underlying structures and processes and undermines more collective and equitable forms of provisioning. [ABSTRACT FROM AUTHOR]

Existing evidence on the impact of R&D on productivity is heterogenous and does not address the question of whether different types of R&D are complements or substitutes. The aim of this research is to open the R&D black box by providing fresh insights about how different R&D types affect productivity in different industrial and technological contexts in the UK. The model adopted allows for non-linearities between R&D and productivity and interactions between R&D types. The analysis makes use of micro data from the Office of National Statistics, comprising 8284 firms from 1998 to 2012. The results show evidence of diminishing marginal returns to total R&D. This concave relationship also holds for intramural R&D, applied/experimental R&D and private R&D. These findings suggest that studies which do not allow for non-linear relationships between R&D and productivity could suffer from specification bias. The results also indicate complementarity between intramural and extramural R&D and between basic and applied/experimental research. Returns to publicly funded R&D are insignificant and there is neither complementarity nor substitution between publicly and privately funded R&D. The findings strengthen the case for modelling the sources of heterogeneity explicitly by taking into account non-linearities and interactions between the different R&D types and productivity. [ABSTRACT FROM AUTHOR]

Aim: To report the patient characteristics and clinical outcome of paediatric in-hospital cardiac arrest in the United Kingdom (UK) National Cardiac Arrest Audit (NCAA) database.Methods: Analysis of all recorded paediatric cardiac arrests in the NCAA dataset over a seven-year period ending on 31 December 2018, within acute children's hospitals (including standalone paediatric hospitals and hospitals with tertiary paediatric services) and acute general hospitals participating in NCAA. In this period 1456 patients (with 1580 events), 1 month to 16 years of age, received chest compressions and/or defibrillation and were attended by a hospital-based resuscitation team in response to an emergency call. The main outcome measure was survival to discharge.Results: For this cohort of paediatric in-hospital cardiac arrest patients the overall rates of sustained return of spontaneous circulation (ROSC) were 69.1% with unadjusted survival to hospital discharge of 54.2%. The presenting rhythm was shockable in 4.3% of events and non-shockable in 82.1% (remainder undetermined); rates of survival to hospital discharge associated with these rhythms were 63.9% and 51.7%. A difference in outcomes was observed between Children's hospitals and acute general hospitals with ROSC rates of 79.1% and 55.5% respectively and survival to hospital discharge rates of 57.7% and 49.3% respectively.Conclusions: These first results from the NCAA database describing the outcome of paediatric in-hospital cardiac arrest in UK hospitals will serve as a benchmark from which to assess the future impact of changes in service delivery, organisation and treatment for in-hospital cardiac arrest in young people. Outcomes for specialist paediatric centres should be studied further as higher rates of ROSC and survival to hospital discharge were observed. [ABSTRACT FROM AUTHOR]

Impact of academic research onto the non-academic world is of increasing importance as authorities seek return on public investment. Impact opens new opportunities for what are known as "professional services": as scientometrical tools bestow some with con1dence they can quantify quality, the impact agenda brings lay measurements to evaluation of research. This paper is partly inspired by the famous "two cultures" discussion instigated by C.P. Snow over 60 years ago. He saw a chasm between different academic disciplines and I see a chasm between academics and professional services, bound into contact through competing targets. This paper draws on my personal experience and experiences recounted to me by colleagues in different universities in the UK. It is aimed at igniting discussions amongst people interested in improving the academic world and it is intended in a spirit of collaboration and constructiveness. As a professional services colleague said, what I have to say "needs to be said". It is my pleasure to submit this paper to the Festschrift devoted to the 60th birthday of a renowned physicist, my good friend and colleague Ihor Mryglod. Ihor's role as leader of the Institute for Condensed Matter Physics in Lviv has been essential to generating some of the impact described in this paper and forms a key element of the story I wish to tell. [ABSTRACT FROM AUTHOR]

We test the proposition that investors' ability to cope with financial losses is much better than they expect. In a panel survey of investors from a large bank in the UK, we ask for their subjective ratings of anticipated returns and experienced returns. The time period covered by the panel (2008–10) is one where investors experienced frequent losses and gains in their portfolios. This period offers a unique setting to evaluate investors' hedonic experiences. We examine how the subjective ratings behave relative to expected portfolio returns and experienced portfolio returns. Loss aversion is strong for anticipated outcomes; investors are twice as sensitive to negative expected returns as to positive expected returns. However, when evaluating experienced returns, the effect diminishes by more than half and is well below commonly found loss aversion coefficients. This suggests that a large part of investors' financial loss aversion results from an affective forecasting error. [ABSTRACT FROM AUTHOR]

Purpose: The broken down first permanent molar (BDFPM) is common in children. Enforced extractions of first permanent molars (EExFPMs) guidelines were published in the United Kingdom (UK) in 2014. We aimed to assess the knowledge and practice of dentists in the United Arab Emirates (UAE) of BDFPMs in children in light of the guidelines. Methods: A cross-sectional sample of UAE-based dentists treating children completed a self-administered questionnaire covering; knowledge and practice of the principle of EExFPMs; to whom dentists would refer in case of BDFPMs; knowledge of the ideal age for EExFPMs (8–10 years) and finally actual awareness of the EExFPMs guidelines. Chi-square tests (p < 0.05). Results: A total of 199 questionnaires were completed (total return rate was 66.33%). There was no agreement on how to deal with a scenario of BDFPMs. Over 85% majority believed in saving BDFPMs rather than extracting them but 89% would consult/refer to other specialists. Whilst 51% of the participants had never carried out EExFPMs in children, 69% were aware of the EExFPMs concept and 61% knew the ideal timing of a lower FPM extraction. More than 82% were unaware of the actual UK EExFPMs guidelines. Paediatric dentists would consider EExFPMs more than other groups (p = 0.007). Conclusion: In the UAE dentist sample surveyed, there was a preference for preserving BDFPMs rather than extracting them in children, despite knowing when the ideal time for extraction was. Training background and specialty were influencing factors. There was a lack of awareness of the actual UK 2014 EExFPMs guidelines. [ABSTRACT FROM AUTHOR]

Decomposition analysis, which breaks down the Total Return on an asset into constituents of Income Yield, Income Growth and the Revaluation Effect, can be used prospectively and retrospectively. To date, it has been mainly applied retrospectively to Equities. In this article, we break new ground, demonstrating that, with appropriate data series, it can be extended to Bonds, which means that Equity and Bond returns and their constituents can now be compared on a like–for–like basis. Empirical analysis of UK Index data since 1976 produces some unexpected results on Fixed Interest and Index–Linked Gilts: for example, throughout the period, the Revaluation Effect has been a consistently significant contributor to the Total Returns of both classes and at a much higher average level than that for Equities; also, the Revaluation Effect for Index–Linked Gilts has recently been at an unprecedented level for any asset class. Seeking to explain them, we examine the role of regulatory activity, arguing that it has created a dangerous dynamic on unsound foundations. We demonstrate that our method of analysis does not consist only of technical operations devoid of practical applications but actually enables us to address important issues in economics and political economy. [ABSTRACT FROM AUTHOR]

Background: Single-stage direct-to-implant reconstruction is the most common method of reconstruction in the UK after a mastectomy. Prepectoral implant placement with full implant coverage using acellular dermal matrix (ADM) is a relatively new technique. We report on long-term outcomes of prepectoral immediate breast reconstruction (IBR) using Braxon® ADM from a single institution. Methods: All patients operated for a mastectomy with IBR using Braxon® from January 2016 to March 2018 were included in the study. The demographic details, treatment details and short- and long-term outcomes were evaluated. Factors affecting complication rates were analysed. Patient-reported outcome measures were studied using BREAST-Q questionnaires. Results: One hundred and sixteen reconstructions performed in 98 patients were included in the study. The median age was 50 years with a mean body mass index of 27.33 kg/m2. The median follow-up period was 440 days. The implant-related major complication rate was 17%, with an unplanned readmission rate of 22.4% and a return to theatre rate of 21.4%. Early complications were significantly higher in patients with node-positive disease. Delayed complications were seen in nine patients. The implant loss rate was 4.3%. The mean BREAST-Q scores were 78 for satisfaction with treatment and 64 for satisfaction with breast domains. The outcomes were comparable to reported national data. Conclusions: Prepectoral implant-based reconstruction with Braxon has comparable complication rates with good long-term aesthetic and patient-reported outcomes. Further studies with larger cohort and longer follow-up are needed. Level of Evidence—Level III, therapeutic study. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to consider the role of political risk in real estate and to specifically examine the implications in Scotland of continuing uncertainty caused by political events. Design/methodology/approach: The primary research links the political timeline around the Scottish independence referendum in 2014 to time series of a combination of individual investment transactions, measures of sentiment from investment agents and yields. The analysis distinguishes between UK and overseas investors. Findings: The political risk over six years ebbed and flowed with the changing probability of constitutional change but ultimately it has been a cumulative dampener on investment in Scotland. An element of the political risk can be deemed to be specific risk linked to UK institutional fund mandates that stems from concerns about possible forced sales with independence. In addition political risk is in the eye of the beholder with overseas investors in Scotland unfazed by the prospects of independence. Practical implications: The short-term impact on investment of the Scottish "neverendum" is very similar to that for independence. The consequences are depressed investment and development that seem set to continue at least until the constitutional hiatus begins to be resolved. Originality/value: This is the first study to explicitly examine the impact of political uncertainty on the real estate sector. [ABSTRACT FROM AUTHOR]

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This paper investigates the market's reaction to U. K. Insider transactions and analyzes whether the reaction depends on the firm's ownership. We present three major findings. First, differences in regulation between the U. K. And United States, in particular the speedier reporting of trades in the U. K. , may explain the observed larger abnormal returns in the U. K. Second, ownership by directors and outside shareholders has an impact on the abnormal returns. Third, it is important to adjust for news released before directors' trades. In particular, trades preceded by news on mergers and acquisitions and CEO replacements contain significantly less information. [ABSTRACT FROM AUTHOR]

We examine the cross section of stock returns using an original dataset consisting of annual observations on price, dividends, and shares outstanding for nearly all stocks listed on U.K. exchanges between 1870 and 1913, supplemented with additional information about attrition. The only clear pattern in the historical U.K. data is the high returns of extremely small stocks. Among the largest 99.8% of stocks, the historical U.K. data do not display the pattern found in modern U.S. (CRSP) data of excess returns for small stocks or stocks with poor past performance. Unlike CRSP data, stocks that do not pay dividends do not outperform stocks that pay small dividends during this period. However, as in the modern data, there is a weak relation between dividend yield and performance for stocks that pay dividends. [ABSTRACT FROM AUTHOR]

This study examined a major contention of stakeholder theory: namely, that a firm can simultaneously enhance the interests of its shareholders and other relevant stakeholders. Financial data relating to the U.K. water supply industry and the customer service performance indicators introduced after privatization in 1989 to protect customer interests provided the basis of the authors' empirical analysis. The results show that, although improving relative customer service performance is costly for firms in terms of current profits, shareholder returns respond in a significantly positive manner to such improvements. The authors interpret this finding as being consistent with stakeholder theory. [ABSTRACT FROM AUTHOR]

The study examines the impact of changes in interest rate and exchange rates and their unexpected changes on industry and size portfolio returns on the Ghana Stock Exchange (GSE) controlling for the 2007/2008 financial crisis. Three main exchange rates (FX) namely, Ghana cedis (Gh¢)/US dollar, Gh¢/Great Britain Pounds (GBP) and the Gh¢/Euro are used. We use OLS, GARCH and ARIMA in our estimations. The study found that only depreciation of the Gh¢/USD reduces the returns of financial stocks and large firms. There is a direct positive impact of the financial crisis on the returns due to investment shift from developed markets where crisis occurs. Variations in the returns are mostly explained by the market index returns (RM), which has a positive impact. However, we find that the positive impact of RM on the portfolio returns (finance, medium and large portfolios) is reduced during the financial crisis. The results largely reveal that shocks to the conditional variance are highly persistent and the response of volatility decays at a slower rate. [ABSTRACT FROM AUTHOR]

In an era of neoliberal reforms, academics in UK universities have become increasingly enmeshed in audit. A new Teaching Excellent Framework (TEF) emerged in 2017 with results determined primarily by proxy data of National Student Survey (NSS) scores, retention data and Longitudinal Educational Outcomes data (LEO). The TEF has been rapidly repurposed in order to shape the behaviour and priorities of both students and academics. The discourse of the TEF legislation, bolstered by studies from HEA/HEPI, assumes the source of inequality of outcome is poor teaching requiring corrective action by universities. Further justification for surveillance and quasi-regulation is borne by appeals to 'value for money' and 'competition'. I argue that what seems to be an arbitrary constellation of proxy data points has in fact been a calculated plan to render universities, staff and students as neoliberal subjects. The accident of accessibility, inasmuch as it overlaps with the neoliberal imperative, has determined which data shall function as Key Performance Indicators (KPIs) and the whole assemblage is cemented by discursive choices which align with neoliberal principles. The Government White Paper Success as a Knowledge Economy, May 2016, forms the text for corpus analysis of keywords, discourses and metaphors. Abbreviation: BIS: HM Government Department of Business, Innovation and Skills; BME: Black and Minority Ethnic; DLHE: Destinations of Leavers from Higher Education; HEI: Higher Education Institution; HERA: Higher Education and Research Act; HESA: Higher Education Statistics Agency; HEA: Higher Education Academy; Hefce: Higher Education Funding Council for England; HEPI: Higher Education Policy Institute; HND: Higher National Diploma; KEF: Knowledge Exchange Framework; KPI: Key Performance Indicator; LEO: Longitudinal Educational Outcomes; NSS: National Student Survey; NUS: national Union of Students; OfS: Office for Students; POLAR: participation of local areas; QAA: Quality Assurance Agency; RAB: Resource Accounting and Budgeting; REF: Research Excellence Framework; ROI: Return on Investment; SDS: Strategically Deployable Shifter; SKE: Success in a Knowledge Economy; TEF: Teaching Excellence and Student Outcomes Framework; WP: Widening Participation [ABSTRACT FROM AUTHOR]

The article tests the Fisher hypothesis with British data and focuses on the relationship between inflation and rates of return for common stocks. Regression models are used to evaluate statistics from the London Business School share price databank and inflation measures from the Index of Retail Prices. The Wholesale Price Index is mentioned in the context of replication tests. The study extended some of the monthly data back to 1935 and the annual data to 1919. The Financial Times Ordinary Share Index provided monthly stock market returns from June 1935 and an equally weighted geometric mean of the stock returns.

This paper investigates a sample of forty-seven British closed-end investment trusts over the interval 1960 to 1970. Using the traditional performance measures of Jensen, Treynor, and Sharpe, it was found that no trust in any of the intervals studied had performance measures that were significantly different from zero. This either means that the test was not powerful enough to identify any superior performance if it existed, or that no trust significantly outperformed the LSE. Two other performance measures were investigated: The first involved an empirically estimated security market line and the second the zero-beta form of the capital asset pricing model. In both cases some significant measures of performance were obtained. On investigating whether the performance measures abstracted from beta, it was found that whereas the new measures were related to beta the effect in the case of the traditional measures was insignificant. [ABSTRACT FROM AUTHOR]

The ability to identify which factors best capture systematic return covariation is central to applications of multifactor pricing models. This paper uses a common data set to evaluate the performance of various proposed factors in capturing return comovements. Factors associated with the market, size, past return, book-to-market, and dividend yield help explain return comovement on an out-of-sample basis (although they are not necessarily associated with large premiums in average returns). Except for the default premium and the term premium, macroeconomic factors perform poorly. We document regularities in the behavior of the more important factors, and confirm their influence in the Japanese and U.K. markets as well. [ABSTRACT FROM AUTHOR]

We compare initial offer prices in privatizations to initial prices in public offerings of private companies. The evidence indicates that government officials in the United Kingdom underprice IPOs significantly more than their private company counterparts. In Canada and Malaysia, however, the opposite is true. There does not appear to be a general tendency for privatizations to be underpriced to a greater degree than private company IPOs. We provide additional evidence on the determinants of privatization initial returns. Our findings indicate that initial returns are significantly higher in relatively primitive capital markets and for privatized companies in regulated industries. [ABSTRACT FROM AUTHOR]

We test whether the reaction of international stock markets to oil shocks can be justified by current and future changes in real cash flows and/or changes in expected returns. We find that in the postwar period, the reaction of United States and Canadian stock prices to oil shocks can be completely accounted for by the impact of these shocks on real cash flows alone. In contrast, in both the United Kingdom and Japan, innovations in oil prices appear to cause larger changes in stock prices than can be justified by subsequent changes in real cash flows or by changing expected returns. [ABSTRACT FROM AUTHOR]

This study examines the behavior of share prices around the ex-dividend dates before and after the introduction of the 1988 Income and Corporation Taxes Act that reduced substantially the tax differential between dividends and capital gains in the United Kingdom. We find that, in the pre-1988 period when the differential taxation of dividends and capital gains is high, ex-day returns are positive and significant. In contrast, in the post-1988 period, ex-day returns are, in most cases, negative and insignificant. Further analysis reveals that, while ex-day returns are significantly related to dividend yield and to the length of the settlement period, they are not affected by the commonly used measures of transaction costs, such as the bid-ask spread and trading volume, or by the day of week, month of the year, type of dividend distribution, or number of days to the actual receipt of the cash dividend. We conclude that taxation affects significantly ex-day share prices in the United Kingdom. [ABSTRACT FROM AUTHOR]

The evidence of slowly mean-reverting components in stock prices has been controversial. The hypothesis of stock price mean-reversion is tested using a regression model that yields the highest asymptotic power among a class of regression tests. Although the evidence that the equally weighted index of stocks exhibits mean- reversion is significant in the period 1926-1988, this phenomenon is entirely concentrated in January. In the post-war period both the equally weighted and the value-weighted indices exhibit seasonal mean-reversion in January. A similar phenomenon is also observed for the equally weighted index of stocks traded on the London Stock Exchange. [ABSTRACT FROM AUTHOR]

This paper utilizes the information in the inflation-indexed bonds market to estimate the New Keynesian Phillips Curve for the UK using an unobserved component approach. The main advantage of this approach comes from using the Kalman filter to explicitly estimate the unobserved expected inflation from the observed break-even inflation rates - the yield difference between the inflation-indexed bonds and the nominal bonds. Our results show that the expected inflation estimated from the unobserved component model plays a significant role in explaining the inflation dynamics in the UK. The evidence also suggests that the estimated inflation expectations are better able to capture the evolution of actual inflation process as compared to the break-even inflation rate as a proxy for expected inflation. [ABSTRACT FROM AUTHOR]

Objectives: External Wall Insulation (EWI) insulates and protect homes against damp. The Energy Company Obligation (ECO) scheme incentivised large energy providers in the UK delivering energy efficiency measures such as EWI to fuel impoverished households. Return on Investment (ROI) analysis is utilised to determine if EWI is a cost-effective procedure in terms of improving health related quality of life (HRQOL) measured using the EQ-5D-3L?, reducing health care expenditure, and fuel costs. Data comes from Stockton-On-Tees council, health care costs data, and information collected from households in the most socially deprived areas in Stockton-on-Tees. Results: The total cost of installation across all 2252 that received EWI was £10,222,954 in 2016 GBP. Annual total benefits were extrapolated across all 3265 households that received EWI. Total benefits were differences between the control and treatment groups in fuel costs, health care costs, and HRQOL multiplied by the National Institute for Health and Care Excellence Quality Adjusted Life Year threshold (£20,000). Total benefits for all households that received EWI were £1,519,045. The ROI of EWI is - 41%. 7.9 years are needed to recoup the costs of the initial investment. [ABSTRACT FROM AUTHOR]

This paper focuses on the spatial imprint and social impacts of the emerging geographies of concentrated overseas investment into London’s high-end real estate market, particularly the boroughs of Westminster and Kensington and Chelsea. Framed by literatures on the 1% and the super-rich, and based on a mixed methodological approach of qualitative interviews with intermediaries and a quantitative mapping of overseas investors using 2011 census data, the results speak to the pervasive nature of “safe-haven” seeking in London real estate and its attendant transnational provenance set within a laissez-faire regulatory framework. In so doing, it makes an important contribution to the geographies of the super-rich, the class geographies of London, and the broader sense that overseas investors are producing what we call “pied-à-terre” urbanism which builds on a conventional gentrification framework (exclusionary displacement and a more affluent incoming group) but also exceeds it in several ways, leading to an increasingly socially attenuated landscape. This exceeding relates to: a different kind of rent gap, in that it is not speculative but safe-haven seeking, a guaranteed return on investment, and occurs without previous disinvestment; the agents are not traditional gentrifiers; the transnational nature of the process, with no attachment to particular places like in the traditional gentrification model; and a process focused on super-prime areas and completely independent of the existing gentrification process in London. [ABSTRACT FROM AUTHOR]

This study examines the relative importance of liquidity risk for the time-series and cross-section of stock returns in the UK. We propose a simple way to capture the multidimensionality of illiquidity. Our analysis indicates that existing illiquidity measures have considerable asset specific components, which justifies our new approach. Further, we use an alternative test of the Amihud (2002) measure and parametric and non-parametric methods to investigate whether liquidity risk is priced in the UK. We find that the inclusion of the illiquidity factor in the capital asset pricing model plays a significant role in explaining the cross-sectional variation in stock returns, in particular with the Fama–French three-factor model. Further, using Hansen–Jagannathan non-parametric bounds, we find that the illiquidity-augmented capital asset pricing models yield a small distance error, other non-liquidity based models fail to yield economically plausible distance values. Our findings have important implications for managing the liquidity risk of equity portfolios. [ABSTRACT FROM AUTHOR]

This study uses logistic regression for the development of prediction models that distinguish between share-repurchasing and non-share repurchasing firms. The estimated models form the basis for an investment strategy, according to which one invests on the stock of the firms that are predicted as repurchasing ones. Using a sample of firms from the UK, France, and Germany, the results show that this strategy generates positive and statistically significant abnormal returns over different investment periods that range between 1 and 18 months. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to explain the derivation of the years purchase (YP) quarterly in advance formula. Design/methodology/approach – This education briefing is an overview of the YP quarterly in advance formula in the context of the UK real estate market. Findings – Whilst arithmetically more precise than market practice it lacks a compelling reason to be adopted in its place. Practical implications – Understand the effect on stated yields of using annually in arrears, rather than quarterly in advance, assumptions. Originality/value – This is a review of existing models. [ABSTRACT FROM AUTHOR]

Purpose -- This paper aims to build a predictive model for the investment yield of British banking-halls. Design/methodology/approach -- Empirical data of similar lots sold at previous auctions are subjected to statistical analyses utilizing a cross-sectional research design. The independent variables analysed are taken from a previous study using the same cases. Models are built using logistic regression and ANCOVA. Findings -- Logistic regression generally generates better models than ANCOVA. A division of Britain on a north/south divide produces the best results. Rent is as good as lot size and price in modelling, but has greater utility, because it is known prior to auctions. Research limitations/implications -- Cases analysed were restricted to lots let entirely as banking-halls. Other lots comprising premises only partially used as banking-halls might produce different results. Freehold was the only tenure tested. Practical implications -- The study provides a form of predictive modelling for investors and their advisors using rent which is known in advance of any sale. Originality/value -- The study makes an original contribution to the field, because it builds a predictive model for investment yields for this class of property. Further research may indicate if similar predictive models can be built for other classes of investment property. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to provide an indication of the returns to commercial property lending over the last 30 years in the UK. Design/methodology/approach -- There is no long-term index of the returns to commercial property lending in the UK. This paper provides a partial solution by simulating the performance of bullet loans of various vintages, based on the value movements of the IPD index. Findings -- On average over the long-term debt returns are higher than equity returns. However, in certain periods, the losses incurred by real estate lenders are very large. Research limitations/implications -- No account taken of risk mitigation strategies used by lenders such as cross-collateralisation. Practical implications -- Provides an alternative approach to that recommended by the recent IPF "Vision For Real Estate Finance" Document based on the use of ICR. Makes the case for a loan equivalent of the IPD index. Social implications -- Reduced chance of resource misallocation and recession due to excess real estate lending. Originality/value -- Very limited information on private real estate debt returns. [ABSTRACT FROM AUTHOR]

We use a time-varying factor-augmented VAR to investigate changes in the transmission mechanism of economic shocks in the UK. Our estimates demonstrate the importance of time variation and suggest that monetary policy shocks had a bigger impact on inflation, equity prices and the exchange rate during the inflation targeting period. Changes in the transmission of policy shocks to bond yields point to more efficient management of long-run inflation expectations. Finally, we investigate responses of disaggregated prices, with the median becoming more negative and cross-sectional patterns consistent with a decrease in the role of cost channels. [ABSTRACT FROM AUTHOR]

This article examines the relation between capital structure and abnormal returns for the UK hospitality sector by using an investment strategy based on hospitality firms' capital structure. We find that abnormal returns are higher, 0.53% per annum, for medium leverage hospitality firms, and it can be increased up to 0.91% by investing in medium leverage and low price-to-book value firms. The findings raise an important issue for the hospitality sector as the firms in this sector are continually aiming to raise external finance to fund expansion. This is a unique situation when compared to other sectors in the economy whereby investors earn higher abnormal returns when investing in low levered firms. [ABSTRACT FROM AUTHOR]