Search results

The accuracy of budgeting is important to fulfilling its various roles. The aim of this study is to examine perceptions of budgeting accuracy in UK universities and to identify and understand the factors that influence them.

A mixed methods research design comprising a questionnaire survey (84 responses, = 51.5%) and 42 semi-structured, qualitative interviews is employed.

The findings reveal that universities tend to be conservative in their budgeting, although previous financial difficulties, the attitude of the governing body and the need to convince lenders that finances are being managed competently might lead to a greater emphasis on a “realistic” rather than cautious budget. Stepwise multiple regression identified four significantly negative influences on perceived budgeting accuracy: the difficulty of forecasting student numbers; difficulties associated with allowing unspent balances to be carried forward; taking a relatively long time to prepare the budget; and the institution’s level of financial surplus. The interviews are drawn upon to both explain and elaborate on the statistical findings. Forecasting student numbers and associated fee income emerges as a particularly challenging and complex issue.

Our regression analysis is cross-sectional and therefore based on correlations. Furthermore, the research could be developed by investigating the views of other parties as well as repeating the study in both the UK and overseas.

Implications for university management follow from the four factors identified as significant influences upon budget accuracy. These include involving the finance department in estimating student numbers, removing or controlling the carry forward of unspent funds, and reducing the length of the budget cycle.

The first study to examine the factors that influence the perceived accuracy of universities’ budgeting, this paper also advances understanding of budgeting accuracy more generally.

Whether from a desire to be seen to be socially responsible, in pursuit of perceived profit opportunities, or as a reaction to increased professionalism on the part of charities, UK banks are paying increasing attention to the voluntary sector. Using secondary data, this paper investigates the market shares of banks amongst charities. It reveals that NatWest is the current market leader, but comparisons with a paper published a decade ago suggest that its market share and lead have diminished significantly. Further analysis reveals that one reason for that decline might be the recent growth in the share accounted for by the Co‐operative Bank, possibly as a consequence of the introduction of its ethical policy, some of the implications of which are discussed.

Ethical investment funds are retail financial products which explicitly add social or ethical goals or constraints to normal financial criteria in selecting their underlying share portfolio. By means of a case study of a UK fund, this paper explores how the relationship between ethical criteria and financial performance might be handled, which is one of the critical issues that arise in putting ethical investment into practice. The research confirms perceptions of a tension between the implementation of an ethical policy and the achievement of good financial performance, and it identifies some of the ways which fund managers might seek to cope with that tension. However, by studying the financial management of an ethical fund in practice, the paper also reveals the ways in which there might be a positive correlation between the financial performance and the ethical effectiveness of a fund, thus providing a complementary perspective to the earlier empirical studies and discussions which have focused on the possibility of ethical concerns undermining financial success.

Fringe, or “non‐wage”, benefits typically form an important part of the compensation package provided for employees, having grown considerably during the 20th century. One of the more traditional types of benefit, of interest in this article, is the provision of goods and services to employees at a price below that which they would normally expect to pay. More specifically, we are interested in the sale, at a discount, of a company's own products, rather than the provision of other goods and services, such as meals or private health insurance, at low rates made possible by company subsidy or the exploitation of its buying power or facilities. While a company may sometimes sell discontinued lines or damaged stock to its employees, our focus is on the sale of normal products. Our primary purpose is to show how, with an understanding of cost and revenue relationships, the problem of setting the rate of discount can be approached. The analysis draws on and extends previous work on shareholder concessions.

The practice of companies donating money and gifts in kind to ‘good works’ or deserving causes is hardly new in the retail sector, but it is one which has received very little public attention in the past. There are significant signs, however, of increasing interest in the matter, and indications that the exercise is becoming more sophisticated. The authors investigate this topic, which though unusual, is clearly a problem for substantial retail companies.

Charities appear to be of growing significance in the United Kingdom, particularly in the context of changed attitudes towards the scope and role of the welfare state. They are also becoming increasingly professional in their management. This article attempts to break new ground in considering charities as a segment for the provision of banking services, beginning with an account of the current policies of the major clearing banks. The second half of the article assesses current market shares, using publicly available data on a sample of large and medium‐sized charities.

Many companies have introduced shareholder concession schemes, where the company provides a concession or “perk” on one or more of the company's products. Reasons for introducing such a scheme include the provision of an additional return to shareholders, the generation of shareholder goodwill and loyalty or increased sales. Whatever the reasons, some cost to the company is involved. Factors for establishing a successful scheme are outlined.

The success of a credit system, in terms of both effectiveness and cost, is largely determined by policy established within the company. Too conservative a policy will entail high opportunity cost through loss of business, but too liberal a policy results in the cost of tying up funds in debtors and the increased possibility of bad debts. A survey investigating building merchants' practices in Wales (1984), conducted by questionnaire, reflects some variety in approaching the provision of trade credit, but a relatively high degree of uniformity and lack of sophistication in monitoring systems. Producing statistical indicators of performance from a computer, ceasing to grant credit, or using external services such as credit insurance and factoring, are options which do not seem to have been fully explored.