A.C. Bruce

Total board remuneration and company performance

Using a hitherto neglected source of data, this paper combines executive emoluments with executive options to construct a broader measure of executive pay than has been possible in earlier British studies. The result of including the long-term share option component of pay along with the more commonly utilized short-term component of emoluments is to reveal executive pay as being significantly more sensitive to company performance than has previously been thought to be the case. The paper questions the current policy stance of British institutional investors and of the Greenbury Committee with respect to executive share options. Copyright 1996 by Royal Economic Society.

Male and female betting behaviour: new perspectives

This paper uses an analysis of betting decisions made in offcourse betting offices in the UK to explore differences between the nature of male and female betting behaviour. Specifically gender differences in levels of performance, propensity for risk taking and levels of confidence in betting decisions are considered. The results provide some evidence for greater risk propensity amongst male bettors, lower levels of female bettor confidence in their choices and some degree of performance advantage for women bettors. The results are discussed in relation to previous research; some of the apparent discrepancies are explained in terms of differences in motivational focus and gender differences in definitions of risk-taking and ‘successful’ performance. In this context areas for future research are highlighted.

Investigating the roots of the favourite–longshot bias: an analysis of decision making by supply‐ and demand‐side agents in parallel betting markets

This paper offers new insights into the behavioural origins of the favourite-longshot bias - an established feature of betting markets, whereby longshots win less often than the subjective probabilities imply and favourites more often. A number of alternative explanations has been offered for this phenomenon but the main debate focuses on whether it is caused by the behaviour of those supplying betting markets (bookmakers) or of the demand-side agents in these markets (bettors) . This study analyses a new data source which offers detailed information for a large sample of recent UK horseraces on decision-making behaviour within the parimutuel and the parallel bookmaker-based betting markets. The results offer strong evidence for the existence of the favourite-longshot bias in bookmaker-based markets, with a corresponding absence of such an effect in the parimutuel case. These results offer support for the view that the origins of the favourite-longshot bias lie principally in the decisions of bookmakers rather than in the decisions of bettors.

Determinants of adoption of flexible production technologies: Evidence from portuguese manufacturing industry

This paper investigates the main determinants of adoption of flexible production technologies (FPTs), using a cross-section of Portuguese manufacturing firms. In order to investigate the determinants of adoption by Portuguese firms we estimate a probit model of technology adoption, where rank, location, industry and demand uncertainty effects are considered. The main findings are that: (i) plant heterogeneity is important in understanding differences in the likelihood of adoption; (ii) spillover effects resulting from geographical proximity foster adoption; (iii) differences in technological regimes across industries also play a role in the diffusion process; and (iv) demand uncertainty increases the likelihood of adoption of FPTs.

Toward an explanation of betting as a leisure pursuit

This paper uses an analysis of betting decisions to explore the motivations underlying offcourse horserace betting — a leisure activity which accounted for a turnover of £4.3 billion in the UK in 1989/90. Specifically, four possible motivations are considered: financial gain, intellectual challenge, social interaction and excitement. A testable proposition is developed, linking each motivation to a particular time period in which the bet is placed and as to whether the bet is placed at starting price. Hence, four distinct subsets of the aggregate betting population are defined. The proposition is tested by examining betting behaviour in each subset according to three bet characteristics — financial return, average stake and degree of risk taken, where the value of each characteristic is held to be indicative of an underlying motivation. The results indicate significant support for the proposition that individuals vary in their motivation to bet which is reflected in the nature and timing of their betting ...

A problem‐based phenomenological growth model for small manufacturing firms

The development of small firms tends to follow certain growth patterns usually referred to as business growth models. This paper reports on the conceptualisation of a “problem‐based phenomenological life cycle model”, which delineates the growth pattern of micro and small manufacturing firms in Cyprus. The empirically validated model offers guidance to small business managers, financiers and advisers as to the challenges and growth complexities accompanying the transitions taking place in small businesses as they develop along their organisational life cycle. Enhanced understanding of the barriers to the development of small business contributes to the better design of policy initiatives that seek to foster the survival, sustainable growth and prosperity of small enterprises.

Costing excitement in leisure betting

The objective of this paper is to explore the effects of excitement on the nature of betting decisions. As such, it addresses an area of inquiry, the relationship between excitement and leisure, which has received only limited attention in the literature. A distinctive feature of the paper is its use of a large and geographically dispersed sample of real betting decisions made in UK betting offices. Two procedures are employed to test the existence and magnitude of the effects of excitement. Those subgroups of the aggregate population which are most subject to excitement are shown to display significantly inferior decision-making performance, despite apparent informational advantages. Evidence is also presented which suggests that they bet with significantly higher stakes and it is argued that the results support the notion that the consumption of excitement involves a financial penalty.

Risk strategy under task complexity: a multivariate analysis of behaviour in a naturalistic setting

This study complements the existing literature on decision-making processes and outcomes in complex settings by exploring the impact of different types of complexity on risk strategies in a naturalistic setting. The study analyses a large sample of decisions made by individuals in UK offcourse betting markets, a fertile environment for observing both a variety of risk strategies and a range of task complexities. Specifically, the investigation focuses on the comparative impacts of complexity defined in terms, respectively, of alternatives and attributes. The results suggest that the risk strategy employed is affected by task complexity. Complexity does not affect the size of risk accepted but alternative- and attribute-based complexity together influence the propensity to accept greater degrees of risk. In addition, the effect of attribute-based complexity on risk taking appears to be modified by the use of risk-hedging strategies. The results are observed to corroborate some earlier work on decision process and outcome; where differences with earlier findings are identified, some possible explanations are offered.

An empirical study of the impact of complexity on participation in horserace betting

The aim of the research reported in this paper was to explore empirically whether levels of participation in horserace betting are affected by the complexity of the betting task. The study employed a systematic random sample of 1161 betting decisions made in UK offcourse betting offices during 1987. The research was conducted in a naturalistic setting where it was possible to grade complexity and to measure levels of participation. Complexity was defined in terms of both the number of alternatives in the decision-makers choice set (number of horses in a race) and the complexity of the attributes set for each horserace (handicap vs. non-handicap races). Results indicated that bettors are not inhibited by alternative-based complexity, but may be inhibited to some extent by attribute-defined complexity.

Decision-Making under Risk: Effect of Complexity on Performance

This paper examined the effect of complexity on performance in decision-making under risk employing a database of 1161 randomly sampled betting decisions made during 1987 in offcourse horserace betting offices situated throughout the UK. The setting for the study is characterised by important ecological advantages over laboratory or alternative naturalistic settings. Complexity is defined in terms of both the number of alternatives in the decision-makers choice set (number of horses in a race) and the complexity of the set of attributes for each horserace (handicap vs nonhandicap races). Performance was not adversely affected by an increase in the number of alternatives and only to a limited extent by an increase in attribute-based complexity. The robustness of the results is reinforced by adjustments which acknowledge and control for the differential random chance of correct decision-making across groups of events with differing complexity.