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The “causal model” approach to business forecasting attempts to discover, mainly on the basis of economic knowledge, those variables which appear to have influenced the forecast variable in the past, and then estimates by econometric methods the quantitative relationship between the causal and forecast variables. Future values of the forecast variable are then obtained by using forecasts of the causal variables in conjunction with the estimated relationship.

In the 1990s various committees (Cadbury, Greenbury, Hempel) reported on governance issues, including the role played by non‐executive directors in promoting “best practice”. Following public concern at cases of “excessive” pay awards to executive directors and financial irregularities the government has recently appointed the Higgs Committee to review again the contribution of non‐executive directors. This paper presents an empirical study of the involvement of non‐executives in large UK companies, assesses the extent to which these companies now “conform” to the recommendations of “best practice” proposed by the earlier committees and looks at the general and specific controversies surrounding the employment of non‐executives as part of companies corporate governance structures.

UK plcs use option schemes and increasingly long‐term incentive plans (LTIP’s) to reward their executive directors in order to improve corporate performance and align their interests more closely with those of the shareholders of the company. This paper presents a study of the option and LTIP arrangements used by a sample of 51 large UK companies over the period 1994‐2001. The general finding is that a substantial proportion of the schemes are “undemanding” rewarding average rather than exceptional performance.

I present a framework for thinking about personal happiness. Ideas from philosophy are combined with research on happiness from various scientific traditions. But treatments in philosophy tend to be atomistic, focusing on one narrow approach at the exclusion of others; treatments in psychology tend also to be circumscribed, emphasizing specific hypotheses but at the neglect of overarching theory. My approach posits a far-reaching theoretical model, rooted in goal-directed action, yet mindful of nonpurposive sources of happiness as well. The heart of the theory is self-regulation of desires and decisions, which rests on self-conscious examination and application of self-evaluative standards for leading a moral life in the broadest sense of guiding how we act in relation to others. Seven elements of happiness are then developed and related to the conceptual framework. These encompass love and caring; work as a calling; brain systems underpinning wanting, liking, and pleasure; the need to deal with very bad and very good things happening to us; the role of moral concerns and emotions; the examined life and its distractions; and finally spirituality and transcendental concerns. The final section of the chapter sketches everyday challenges and choices academics face.

Economic recessions have severely stretched the financial resources of many businesses. One result has been to focus attention on the management of working capital in companies that have often had to remain solvent by shrinking.

An important aspect of UK competition policy is the attempt to maintain competitive markets by prohibiting restrictive agreements and cartels involving price fixing, market sharing, etc., the effect of which is to suppress, limit or distort active rivalry between suppliers. Examines UK policy towards restrictive agreements, alongside similar attempts to control cartels in the European Community. Outlines the regulatory frameworks operating in the UK and EC and emphasizes particular points of interest in the application of policy control by reference to selected restrictive agreement/cartel cases. While the attack on formal “open” collusion has been highly successful, it is clear from the work of the Office of Fair Trading and the European Commission that clandestine (”covert”) collusion between suppliers remains an on‐going problem.

In the past few years there has been a radical transformation of international monetary relations. Since 1973 a large number of countries have abandoned the Bretton Woods system of fixed par values for their currencies and have adopted a variety of exchange rate arrangements. These new practices are shortly to be sanctioned by an amendment to the Articles of Agreement of the International Monetary Fund. This paper examines recent developments in exchange rate practices and the proposed role of the Fund in regard to the conduct of exchange rate management.

Competition policy in the UK and European Community is concerned with the maintenance and promotion of competitive markets. However, many market sectors in the UK and EC exhibit high levels of supplier concentration and many are dominated by either a quasimonopoly supplier or a core of large oligopolistic firms. Examines UK and EC policy towards the control of dominant firms. The regulatory frameworks operating in the UK and EC are outlined and particular points of interest in the application of policy control are highlighted by reference to selected monopoly cases.

A revised Combined Code on corporate governance was introduced in the UK in 2003 which set out a number of new provisions relating to the composition of the company's Board of Directors and its main Committees. The Code gives greater prominence to the role of non‐executive directors in a company's corporate governance structures and decision‐making processes. This paper examines the main provisions of the Code relating to non‐executive directors and the emphasis it places on the importance of non‐executives being “independent”.

The paper discusses the main issues concerning the effectiveness of non‐executive directors, drawing in part of the evidence provided by a sample of large UK companies.

Most companies “comply” with the Code's requirements relating to non‐executive directors and endorse the positive contribution they make to Board and Committee work.

Considers the pros and cons of the role of non‐executives and the issue of what constitutes “ independency”.

This is one of the first papers to examine the provisions of the new Code relating to non‐executive directors.

Many modern theories of managerial behaviour are based on the initial observation of the separation of ownership and control. This article is concerned with the ownership of British industry. Statistics are presented relating to the pattern of UK share ownership both now and in the future. Emphasis is placed on the persistent and rapid growth in equity holdings by financial institutions—insurance companies, pension funds, investment trust companies and unit trusts. Some concluding comments are made on the possibility of greater managerial participation by major financial institutions, and hence the possible convergence of ownership and control.