Purpose -The purpose of this paper is to explore the nature and significance of flexibility in decisions about education and training options. This is done through an examination of the relevance of real options valuation (ROV) to our understanding of educational and training choices. Through this examination, the paper aims to contribute to the debate about how we can better advise and support people making such decisions. Design/methodology/approach -The research involved three overlapping stages: a critical examination of the theoretical work on flexibility in decisions; a review of the literature on the role and significance of flexibility in education and training decisions; and an application of the lessons of ROV to the analysis of decisions about education, training and careers. Findings -The analysis of the theoretical work on flexibility alongside the review of the literature on education and training decision-making, demonstrated that there was little current application of theory to the analysis of such choices. Reviewing the literature, it was discovered that ROV held significant lessons for the analysis of education and training decisions, and important practical implications for the support and guidance of people making these choices. Originality/value -This is the first study to apply the principles of ROV to educational and training choices. This paper examines the importance of understanding and valuing flexibility in postsecondary educational and training choices. Our definition of flexibility is "the degree to which a decision leading to action allows further choices over time". This is a crucial, though neglected, aspect of choosing training and educational programmes, for while some decisions "lock" students into particular training and career pathways, others involve more diverse opportunities to train or work. We thus argue that understanding and addressing the flexibility in such choices should be an integral part of any career counsel or advice.The paper is relevant to the two classes of adviser who counsel on study choices and career selections: secondary school (high school) counsellors; and further education and tertiary college counsellors. Both of these professionals are in the business of advising students about their training/educational choices, and providing information about the consequences of these choices in terms of career. Therefore, for the purposes of this paper, we make no distinction between these two types of counsellors, focusing more on the content of counselling and advising, rather than on the person providing it.Many variables influence individual study choices and career selection, some of which are difficult to quantify, or even to characterise. In a recent study, for instance, The current issue and full text archive of this journal is available at
In this paper, we analyze the relationship between industrial stagnation in the US economy and the financialization of nonfinancial firms by asking whether firms in industries experiencing a stronger post-1970 tendency towards stagnation allocate more funds to shareholder payouts and, specifically, share repurchases. While strands of the literature on financialization have long-emphasized the role of stagnation in driving financialization, fewer papers have considered this hypothesis empirically. Our paper speaks to this space in the literature, by linking industrial stagnation in capital accumulation to a firm's decision to financialize. We, first, use firm-level data to construct an empirical measure of industrial stagnation. Drawing on insights from the Monopoly Capital School, we measure stagnation using the Baran ratiowhich describes the average share of surplus allocated towards investment within an industry -and show a secular decline in the average Baran ratio since 1980. Second, we analyze if the tendency towards stagnation captured by the declining Baran ratio predicts the likelihood and magnitude of a firm's shareholder payouts. We show that firms in industries with a stronger stagnation tendency (a lower Baran ratio) are more likely to repurchase stock and, among firms that do repurchase, that a lower Baran ratio predicts a higher magnitude of these shareholder payouts. These results suggest that a slowdown on the nonfinancial side of the economy is one factor underlying financialized firm behavior in the post-1980 USA.
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