Academic literature on the topic 'Commercial finance companies Australia'

The petroleum industry in Australia is at the centre of a web of complex laws. In addition to the legislation under which petroleum exploration and production tenements are granted there is a multiplicity of statutes and regulations, Commonwealth and State, which have a direct bearing on the conduct of those involved in exploring for or exploiting Australia's petroleum reserves. For example, the level of participation by foreigners is governed by the Commonwealth Foreign Investment Guidelines and the Foreign Takeovers Act 1975; the Commonwealth has control over the export of petroleum under the Customs (Prohibited Exports) Regulations and domestic markets are subject to the operation of the Crude Oil Allocation Scheme. The Commonwealth continues to have the right to regulate the transfer of funds to and from Australia under the Banking (Foreign Exchange) Regulations. Certain States such as South Australia and New South Wales have their own foreign investment guidelines.Not only this, there are revenue laws which govern very much the way in which petroleum projects are organised, interests transferred and otherwise dealt with and finance made available, such as State stamp duty legislation, Commonwealth income tax laws, and Commonwealth legislation imposing registration fees on dealings in exploration permits and production licences. A new tax, Resource Rent Tax, is to be introduced.Then there are laws which have an indirect bearing on petroleum activities such as the Companies Code which, in addition to governing the administration and organisation of companies, controls the way funds can be raised.The statutory and regulatory framework is only part of the picture. The rights and obligations of participants in petroleum projects as between themselves are almost always set out in a joint venture or joint operating agreement, the combination between the participants being known as an unincorporated joint venture. This form of business organisation is not a partnership; it is not the creature of legislation. Indeed it has been rarely referred to in Acts of Parliament. Problems arising under the joint venture agreement will be considered against the backdrop of the general law which unfortunately has seldom been called upon to resolve disputes between participants in joint ventures. An illustration of one of these rare instances is Brian Pty Ltd v United Dominions Corporation Ltd (1983), where the New South Wales Court of Appeal considered the fiduciary relationship of joint venturers.Despite this legislative and regulatory' backdrop and the uncertainties as to the true effect of joint venture agreements, the industry up until quite recently has survived with little litigation. This is no longer the case. Recent and pending litigation shows that there is no reluctance on the part of participants to take their disputes to court, often at great expense and with unfortunate results for previously close relationships. It must now be said that money spent to achieve proper and clear agreement on organisational and legal matters at the earliest stage of a project is money just as well spent as that on drilling and other operational activities.

The 20th Century has witnessed the consolidation of global industry and finance. It has also seen the growth of criticism of some developments associated with globalisation. This has been particularly the case with the resource extraction industries and their downstream counterparts. These industries now have to consider a range of factors as central to the management of risk and of reputation that would not have been necessary 30 years ago. One of these factors is the need for community consultation regarding the nature of specific resource development and often some form of compensation for the impacts of development.Central to the Australian formulation of community consultation and development in the context of land use and natural resource development have been the Northern Territory Aboriginal Land Rights Act (ALRA) and the Native Title Act (NTA) as well as the setting up of Land Councils and representative bodies. These laws have been crucial, not just to the administration of land, but to the concept of aboriginality and citizenship as a whole. Like the ALRA, the Native Title Act has had a fundamental impact on the relationship between Aboriginal land interests and resource development. It has often, however, been mired in uncertainty, conflict, and amendments. This has contributed to a climate of legalism that has not necessary always been to the benefit of on-the-ground agreement processes.In Indonesia there is no basis in law for native title issues and a high level of risk exists as a result of social and political transition. As a result some companies operating in Indonesia have begun to develop new approaches to issues of community relations and development. A new understanding of the necessity of carefully planned partnerships in the context of resource development has begun to emerge in Indonesia. The BP Tangguh project in the Bintuni Bay area of West Papua has set high standards for consultative practices relating to community consultation and community development practices. Whatever the commercial success of the Tangguh project, the processes and systems developed for that project indicate the likely future direction of other best-practice resource development projects in Indonesia and elsewhere.In the past, development in Indonesia has been heavily influenced by rent capitalism, which has tended to emphasise the giving of permission over effective business and development practice. While the proponents of Native Title in Australia have often seen Australia as setting an international standard for development practice, this is belied by the actual results of Native Title and what is being undertaken in other international contexts. Native Title also often seems to act as a form of rent capitalism. As such it may be that Native Title does not necessarily define best practice, and, in the international context, may be under-performing in terms of risk and reputation management.Rather than assuming that emerging practices in either Indonesia or Australia are somehow occupying the higher ground in terms of best-practice development, it is suggested that Native Title and international practice can usefully be cross-fertilised in a critical manner. This process can be beneficial to companies and to stakeholders alike, particularly in the context of transparent consultation and negotiation practices that focus on the possibilities for cooperation in development, rather than conflict.

PurposeThe paper seeks to examine whether or not wealth effects and changes in the systematic risk associated with the return structure of the Greek commercial chartered banks, investment firms and insurance companies resulted from the passage of the European Union Banking Directives over the period 1988‐1997.Design/methodology/approachUsing monthly stock returns from the DataStream database for the period January 1988 to December 1997, the separate effects of each of the EU Banking Directives on Greek commercial chartered banks, investment firms and insurance companies are tested. The “seemingly unrelated regression” methodology is utilized to test three portfolios consisting of an equally weighted banking, investment and insurance index made up of major Greek banks, investment firms and insurance companies respectively. The Greek Market Index serves as a proxy for the market portfolio. All the aforementioned indices were converted to returns using the log difference method.FindingsEmpirical results indicate that the systematic risk dramatically increased for Greek insurance and investment firms and moderately increased for Greek commercial chartered banks through the tabling of the Free Capital Movement Directive in the Greek Parliament. After controlling for systematic risk, the results suggest that the passage of the Free Capital Movement Directive did not create wealth effects for the shareholders of commercial chartered banks, investment firms and insurance companies. Conversely, the results demonstrate that the Second Banking, Investment Services and Capital Adequacy Directives produced no wealth effects for the investment firms and insurance companies, but not for commercial chartered banks' shareholders. The whole wealth effect on the Greek financial sector was neutral.Originality/valueThis article will be of value to academics, bankers, bank regulators, practitioners, and economic policy makers who are interested in the regulatory evolution of the EU banking industry.

Survey researchers face declining response rates, due to lower contactability and more selective cooperation by potential respondents. Commercial market research companies are under even greater pressure than academic researchers as most commercial surveys do not have high social status. Several persuasion techniques to enhance cooperation have been used in academic surveys, though some of them might be considered unethical. Given the commercial pressures of time and cost, this study investigated the extent to which market research companies favoured these persuasion techniques. A survey of fieldwork managers in companies operating in Australia was conducted, along with qualitative research. It was found that some techniques were unacceptable as they threatened long-term relationships with the public, some were impractical and others were useful, but not for all surveys.

Due to the poor reputation of the private security industry and the multiple lines of concerns raised by scholars over the potentially corrosive costs of commercial security provision, it is important to consider whether for-profit companies are a welcome addition to the network of actors who respond to the needs of domestic violence victims. Using the case study of ‘Protective Services’ in Victoria, Australia, who appear to be one of the first known instances of a private security company offering services to victims of domestic violence, we argue that there may be advantages for victims engaging with commercial providers and reasons for optimism that commercial outfits can improve feelings of safety for a particularly vulnerable and under-protected population.

Purpose This paper aims to examine whether knowledge about companies switching auditors from Big 4 firms to regional firms affects commercial lending decisions. Design/methodology/approach The approach used is an experiment where bank loan officers make judgments about risk and probabilities of granting a line of credit. Findings Neither risk assessments nor probabilities of granting credit differed for companies that switch auditors from Big 4 firms to regional firms as compared to companies that did not switch auditors. For companies that did switch auditors, providing a reason for the switch did not influence lending decisions. Research limitations/implications Lenders were given questionnaires that do not contain all of the information they may have used in actual loan decision settings. Also, the hypothetical nature of the decisions and incentives may not produce the responses that would be given in actual lending scenarios. Practical implications When applying for bank loans, companies need not be concerned about having switched auditors from Big 4 to regional firms. Also, companies that switch from Big 4 firms to regional firms need not worry about whether or not to provide a reason for the audit firm switch. Originality value This study adds to the auditor switching literature by investigating the effects of switches from Big 4 firms to regional firms on commercial lending decisions.

Purpose Although studies in corporate sustainability have been vastly growing, there has been an increasing demand for more industry-specific sustainability reporting studies to develop a greater understanding of industry differences in sustainability reporting practice. This study aims to measure the quality of sustainability disclosures in the current leading environmentally sensitive industry in Australia – the resources industry. Design/methodology/approach A scoring index was developed to measure economic, social and environmental aspects of sustainability by integrating the fundamental principles of the hard and soft disclosure items from Clarkson et al.’s (2008) environmental index into the social and economic aspects of the Global Reporting Initiative framework. Subsequently, the index was used to assess sustainability disclosures in the annual and sustainability reports of resources companies in Australia. Findings The main findings show that companies report more of soft disclosure items than the hard ones. It is also found that companies report most sustainability information in the economic aspect rather than the social and the environmental aspects of sustainability. Most companies disclose sustainability information in their annual reports with few companies producing stand-alone sustainability reports. Originality/value This study addresses the need for more industry-specific sustainability studies by focusing on Australia’s resources industry. It also contributes to the lack of an existing tool to measure disclosures based on companies’ true contributions to sustainability by developing a new scoring index for hard and soft sustainability disclosures, which includes all three aspects of sustainability (i.e. economic, environmental and social).

Stakeholders are increasingly insistent that companies increase firm value. The problem is that stakeholders of financial services firms are unable to accurately determine firm value. The purpose of this correlational study was to examine the accuracy of 4 valuation models in predicting the market value of equity of commercial finance companies. Study participating companies were 8 listed U.S. or Canadian commercial finance companies. The theoretical constructs of the study included the accuracy of valuation models, modern portfolio theory, and the correlation of book value of equity to market value of equity. Financial information on participating companies obtained from public filings were input data in 4 valuation models. Multiple regression analysis of valuation model results and book value of equity (the predictor variables) were used to determine the accuracy of the models in predicting the market value of equity (response variable). The findings of the study showed that all 4 valuation models in combination with the book value of equity were statistically significant predictors of the market value of equity of the participating companies at the p < .05 level. However, the dividend discount model (DDM) and residual income model (RIM) were statistically more accurate without the combination of book value of equity (p = .000 and p = .000, respectively) than the discounted cash flow and risk-adjusted discounted cash flow valuation models (p = .371 and p = .904, respectively). The results of this study contribute to positive social change by providing business leaders an ability to measure the effectiveness of their actions in creating firm value. Corporate social responsibility activities correlate to value creation for firms that engage in promoting employee welfare and other stakeholder welfare.

Stakeholders are increasingly insistent that companies increase firm value. The problem is that stakeholders of financial services firms are unable to accurately determine firm value. The purpose of this correlational study was to examine the accuracy of 4 valuation models in predicting the market value of equity of commercial finance companies. Study participating companies were 8 listed U.S. or Canadian commercial finance companies. The theoretical constructs of the study included the accuracy of valuation models, modern portfolio theory, and the correlation of book value of equity to market value of equity. Financial information on participating companies obtained from public filings were input data in 4 valuation models. Multiple regression analysis of valuation model results and book value of equity (the predictor variables) were used to determine the accuracy of the models in predicting the market value of equity (response variable). The findings of the study showed that all 4 valuation models in combination with the book value of equity were statistically significant predictors of the market value of equity of the participating companies at the p < .05 level. However, the dividend discount model (DDM) and residual income model (RIM) were statistically more accurate without the combination of book value of equity (p = .000 and p = .000, respectively) than the discounted cash flow and risk-adjusted discounted cash flow valuation models (p = .371 and p = .904, respectively). The results of this study contribute to positive social change by providing business leaders an ability to measure the effectiveness of their actions in creating firm value. Corporate social responsibility activities correlate to value creation for firms that engage in promoting employee welfare and other stakeholder welfare.

Knowledge of the investment risk of investment-grade commercial real estate (‘ICRE’) is important because it determines the approaches which should be taken to portfolio management. However, relatively little is known about this risk. This research expands the body of knowledge of ICRE investment risk by producing conclusions about the information content of prices and the distribution of returns in the ICRE context. It is broken into three main parts. First, the ICRE returns-generating process is characterised to form a basis for deducing theoretical conclusions about the information content of prices and the stochastic attributes of returns. The rationale for this approach lies in capital markets literature, which demonstrates that the characteristics of the information structure of markets, the decision-making processes of investors and the market trading mechanism determine the main attributes of the process of price evolution (which is assumed to be the main driver of returns). The analysis concludes that ICRE prices are partially informed, and changes in prices are described by a ‘jump’ process. Second, analysis of a database of ‘large’ price changes supplied by the Property Council of Australia is undertaken to empirically test the jump process hypothesis. This analysis provides evidence that natural events associated with changes in the leasing structure of properties are a primary driver of relatively large, infrequent dislocations in valuation-based prices. With parts one and two as a backdrop, the third part of this research empirically tests a discrete mixture of normals (‘DMON’) model of investment risk. Capital markets research shows that a DMON model flows naturally from jump price processes. DMON models fitted to cross-sectional returns on individual properties supplied by the PCA are found to be superior to the normal and stable Paretian models previously proposed by other researchers. In aggregate these conclusions have serious implications for the management of ICRE portfolios, and suggest a need for additional research. Some implications include: (1) Mean-lower partial variance is superior to mean-variance optimisation. (2) Forecasting the distribution of ICRE returns forms a new tool for active management. (3) Passive portfolio management is inappropriate. (4) Comparables-based valuations may be unreliable for investment decisions.
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The crucial role played by small and medium-sized industries (SMIs) in developing countries is very well acknowledged. In Malaysia, for example, the SMIs are perceived as the backbone of the nation's industrialisation process. However, the promotion and development of these SMIs are often hampered by their lack of access to formal institutional credits. The lack of access to formal credits is often ascribed to the higher level of perceived risks, moral hazards and transactions costs. At present, banks and SMIs in developing countries do not have the appropriate technology to adequately assess these risks. The present study seeks to suggest that project appraisal practice can and should be adopted by the SMIs in order to assess their project's risks. Banks are recommended to use similar techniques to objectively evaluate their lending risks. Built upon the theoretical framework of finance and development, the study empirically evaluates the relationship between the adoption of project appraisal practice by the SMIs and their access to formal sector finance. In addition, the study also attempts to identify the factors that can influence the company's decision whether or not to adopt formal project appraisal practice. A very significant and positive relationship was found between the adoption of project appraisal practice and the SMIs' access to formal sector finance. The following factors were found to be significant in determining whether or not a firm adopts project appraisal practice: (1) access to banks finance, (2) entrepreneur's level of education, (3) training on project appraisal, (4) market classification, and, (5) level of business experience. The study therefore concludes that the adoption of project appraisal practice by SMIs should be encouraged through formal training. Finally, the study suggests that the present system of providing finance to SMIs should be reformed and a more innovative and efficient system is recommended.

According to the Reserve Bank of Australia (2006) the increased supply of Commercial Mortgage-Backed Securities (CMBS), with a range of subordination, has broadened the investor base in real estate debt markets and reduced the commercial property sector’s dependence on bank financing The CMBS market has been one of the most dynamic and fastest-growing sectors in the capital markets, for a market which was virtually nonexistent prior to 1990. The global CMBS market issuance which stood at AU$5.1 billion (US$4 billion) in 1990 had grown to AU$380 billion (US$299 billion) by the end of 2006. In Australia, a total of over 60 CMBSs with nearly 180 tranches totalling over AU$17.4 billion had been issued to December 2006 from when they were first introduced in 1999. To date few studies have been done on Australian CMBSs outside the credit rating agency circles. These studies are predominantly practitioner focused (Jones Lang LaSalle 2001; Richardson 2003; Roche 2000, 2002). O’Sullivan (1998) and Simonovski (2003) are the only academic studies on CMBSs. As such, this thesis examines issues relating to the development of Australian CMBSs and quantitatively and qualitatively analyses the structuring of Australian CMBSs. In assessing the growth of the Australian CMBS market, an interpretive historical approach (Baumgarter & Hensley 2005) is adopted to provide a cogent review and explanation of features of international and Australian CMBSs. This helps to understand the changing nature of the market and provides better understanding of the present and suggests possible future directions. The Australian CMBS market is matured in comparison with the larger US and EU CMBS markets as seen by the diversity of asset classes backing the issues and transaction types, tightening spreads, and record issuance volumes. High property market transparency (Jones Lang LaSalle 2006b) and predominance of Listed Property Trusts (LPT) as CMBS issuers (Standard & Poor’s 2005b), who legally have to report their activities and underlying collateral performance to regulatory regimes such as Australian Stock Exchange (ASX)/Australian Securities and Investment Commission (ASIC) and their equity partners, have contributed to the success of the Australian CMBS market. Furthermore, the positive commercial real estate market outlook should support future CMBS issuance, with LPTs continuing their dominance as issuers. In investigating property risk assessment in Australian CMBSs, all the CMBSs issued over a six year period of 2000 to 2005 were obtained from Standard and Poor’s presale reports as found in their Ratings Direct database to identify and review how property risk factors were addressed in all issues and within specific property asset classes following the delineation of property risk by Adair and Hutchinson (2005). Adequate assessment of property risk and its reporting is critical to the success of CMBS issues. The proposed framework shows that assessing and reporting property risk in Australian CMBSs, which are primarily backed by direct property assets, under the headings of investment quality risk, covenant strength risk, and depreciation and obsolescence risk can easily be done. The proposed framework should prove useful to rating agencies, bond issuers and institutional investors. Rating agencies can adopt a more systematic and consistent approach towards reporting of assessed property risk in CMBSs. Issuers and institutional investors can examine the perceived consistency and appropriateness of the rating assigned to a CMBS issue by providing inferences concerning property risk assessment. High property market transparency (Jones Lang LaSalle 2006b) and predominance of Listed Property Trusts (LPT) as CMBS issuers (Standard & Poor’s 2005b), who legally have to report their activities and underlying collateral performance to regulatory regimes such as Australian Stock Exchange (ASX)/Australian Securities and Investment Commission (ASIC) and their equity partners, have contributed to the success of the Australian CMBS market. Furthermore, the positive commercial real estate market outlook should support future CMBS issuance, with LPTs continuing their dominance as issuers. In investigating property risk assessment in Australian CMBSs, all the CMBSs issued over a six year period of 2000 to 2005 were obtained from Standard and Poor’s presale reports as found in their Ratings Direct database to identify and review how property risk factors were addressed in all issues and within specific property asset classes following the delineation of property risk by Adair and Hutchinson (2005). Adequate assessment of property risk and its reporting is critical to the success of CMBS issues. The proposed framework shows that assessing and reporting property risk in Australian CMBSs, which are primarily backed by direct property assets, under the headings of investment quality risk, covenant strength risk, and depreciation and obsolescence risk can easily be done. The proposed framework should prove useful to rating agencies, bond issuers and institutional investors. Rating agencies can adopt a more systematic and consistent approach towards reporting of assessed property risk in CMBSs. Issuers and institutional investors can examine the perceived consistency and appropriateness of the rating assigned to a CMBS issue by providing inferences concerning property risk assessment. The ultimate goal of structuring CMBS transactions is to obtain a high credit rating as this has an impact on the yield obtainable and the success of the issue. The credit rating process involves highly subjective assessment of both qualitative and quantitative factors of a particular company as well as pertinent industry level or market level variables (Huang et al. 2004), with the final rating assigned by a credit committee via voting (Kwon et al. 1997). As such, credit rating agencies state that researchers cannot replicate their ratings quantitatively since their ratings reflect each agency’s opinion about an issue’s potential default risk and relies heavily on a committee’s analysis of the issuer’s ability and willingness to repay its debt. However, researchers have replicated bond ratings on the premise that financial ratios contain a large amount of information about a company’s credit risk. In this study, quantitative analysis of determinants of CMBS credit ratings issued by Standard and Poor’s from 2000 – 2006 using ANNs and OR and qualitative analysis of factors considered necessary to obtain a high credit rating and pricing issues necessary for the success of an issue through mail surveys of arrangers and issuers are undertaken. Of the quantitative variables propagated by credit rating agencies as being important to CMBS rating, only loan-to-value ratio (LTV) is found to be statistically significant, with the other variables being statistically insignificant using OR. This leads to the conclusion that statistical approaches used in corporate bond rating studies have limited replication capabilities in CMBS rating and that the endogeneity arguments raise significant questions about LTV and debt service coverage ratio (DSCR) as convenient, short-cut measures of CMBS default risk. The ultimate goal of structuring CMBS transactions is to obtain a high credit rating as this has an impact on the yield obtainable and the success of the issue. The credit rating process involves highly subjective assessment of both qualitative and quantitative factors of a particular company as well as pertinent industry level or market level variables (Huang et al. 2004), with the final rating assigned by a credit committee via voting (Kwon et al. 1997). As such, credit rating agencies state that researchers cannot replicate their ratings quantitatively since their ratings reflect each agency’s opinion about an issue’s potential default risk and relies heavily on a committee’s analysis of the issuer’s ability and willingness to repay its debt. However, researchers have replicated bond ratings on the premise that financial ratios contain a large amount of information about a company’s credit risk. In this study, quantitative analysis of determinants of CMBS credit ratings issued by Standard and Poor’s from 2000 – 2006 using ANNs and OR and qualitative analysis of factors considered necessary to obtain a high credit rating and pricing issues necessary for the success of an issue through mail surveys of arrangers and issuers are undertaken. Of the quantitative variables propagated by credit rating agencies as being important to CMBS rating, only loan-to-value ratio (LTV) is found to be statistically significant, with the other variables being statistically insignificant using OR. This leads to the conclusion that statistical approaches used in corporate bond rating studies have limited replication capabilities in CMBS rating and that the endogeneity arguments raise significant questions about LTV and debt service coverage ratio (DSCR) as convenient, short-cut measures of CMBS default risk. However, ANNs do offer promising predictive results and can be used to facilitate implementation of survey-based CMBS rating systems. This should contribute to making the CMBS rating methodology become more explicit which is advantageous in that both CMBS investors and issuers are provided with greater information and faith in the investment. ANN results show that 62.0% of CMBS rating is attributable to LTV (38.2%) and DSCR (23.6%); supporting earlier studies which have listed the two as being the most important variables in CMBS rating. The other variables’ contributions are: CMBS issue size (10.1%), CMBS tenure (6.7%), geographical diversity (13.5%) and property diversity (7.9%) respectively. The methodology used to obtain these results is validated when applied to predict LPT bond ratings. Both OR and ANN produce provide robust alternatives to rating LPT bonds, with no significant differences in results between the full models of the two methods. Qualitative analysis of surveys on arrangers and issuers provides insights into structuring issues they consider necessary to obtain a high credit rating and pricing issues necessary for the success of an issue. Rating of issues was found to be the main reason why investors invest in CMBSs and provision of funds at attractive rates as the main motivation behind CMBS issuance. Furthermore, asset quality was found to be the most important factor necessary to obtain a high credit rating supporting the view by Henderson and ING Barings (1997) that assets backing securitisation are its fundamental credit strength. However, ANNs do offer promising predictive results and can be used to facilitate implementation of survey-based CMBS rating systems. This should contribute to making the CMBS rating methodology become more explicit which is advantageous in that both CMBS investors and issuers are provided with greater information and faith in the investment. ANN results show that 62.0% of CMBS rating is attributable to LTV (38.2%) and DSCR (23.6%); supporting earlier studies which have listed the two as being the most important variables in CMBS rating. The other variables’ contributions are: CMBS issue size (10.1%), CMBS tenure (6.7%), geographical diversity (13.5%) and property diversity (7.9%) respectively. The methodology used to obtain these results is validated when applied to predict LPT bond ratings. Both OR and ANN produce provide robust alternatives to rating LPT bonds, with no significant differences in results between the full models of the two methods. Qualitative analysis of surveys on arrangers and issuers provides insights into structuring issues they consider necessary to obtain a high credit rating and pricing issues necessary for the success of an issue. Rating of issues was found to be the main reason why investors invest in CMBSs and provision of funds at attractive rates as the main motivation behind CMBS issuance. Furthermore, asset quality was found to be the most important factor necessary to obtain a high credit rating supporting the view by Henderson and ING Barings (1997) that assets backing securitisation are its fundamental credit strength. In addition, analyses of the surveys reveal the following: • The choice of which debt funding option to use depends on market conditions. • Credit tranching, over-collateralisation and cross-collateralisation are the main forms of credit enhancement in use. • On average, the AAA note tranche needs to be above AU$100 million and have 60 - 85% subordination for the CMBS issue to be economically viable. • Structuring costs range between 0.1% – 1% of issue size and structuring duration ranges from 4 – 9 months. • Preferred refinancing options are further capital market issues and bank debt. • Pricing CMBSs is greatly influenced by factors in the broader capital markets. For instance, the market had literary shut down as a result of the “credit crunch” caused by the meltdown in the US sub-prime mortgage market. These findings can be useful to issuers as a guide on the cost of going to the bond market to raise capital, which can be useful in comparing with other sources of funds. The findings of this thesis address crucial research priorities of the property industry as CMBSs are seen as a major commercial real estate debt instrument. By looking at how property risk can be assessed and reported in a more systematic way, and investigating quantitative and qualitative factors considered in structuring CMBSs, investor confidence can be increased through the increased body of knowledge. Several published refereed journal articles in Appendix C further validate the stature and significance of this thesis. It is evident that the property research in this thesis can lead aid in the revitalisation of the Australian CMBS market after the “shut down” caused by the melt-down in the US sub-prime mortgage market and can also be used to set up property-backed CMBSs in emerging countries where the CMBS market is immature or non-existent. In addition, analyses of the surveys reveal the following: • The choice of which debt funding option to use depends on market conditions. • Credit tranching, over-collateralisation and cross-collateralisation are the main forms of credit enhancement in use. • On average, the AAA note tranche needs to be above AU$100 million and have 60 - 85% subordination for the CMBS issue to be economically viable. • Structuring costs range between 0.1% – 1% of issue size and structuring duration ranges from 4 – 9 months. • Preferred refinancing options are further capital market issues and bank debt. • Pricing CMBSs is greatly influenced by factors in the broader capital markets. For instance, the market had literary shut down as a result of the “credit crunch” caused by the meltdown in the US sub-prime mortgage market. These findings can be useful to issuers as a guide on the cost of going to the bond market to raise capital, which can be useful in comparing with other sources of funds. The findings of this thesis address crucial research priorities of the property industry as CMBSs are seen as a major commercial real estate debt instrument. By looking at how property risk can be assessed and reported in a more systematic way, and investigating quantitative and qualitative factors considered in structuring CMBSs, investor confidence can be increased through the increased body of knowledge. Several published refereed journal articles in Appendix C further validate the stature and significance of this thesis. It is evident that the property research in this thesis can lead aid in the revitalisation of the Australian CMBS market after the “shut down” caused by the melt-down in the US sub-prime mortgage market and can also be used to set up property-backed CMBSs in emerging countries where the CMBS market is immature or non-existent.

Orientador: Eder Pires de Camargo
Banca: Silvia Regina Quijadas Aro Zuliani
Banca: Camila Silveira da Silva
Resumo: Este trabalho apresenta uma análise sobre as Representações Sociais (RS) que licenciandos-bolsistas de um projeto Pibid-Química possuem acerca de aspectos da Educação Especial e da Educação Inclusiva, como conceitos que caracterizam um aluno com Necessidades Educacionais Especiais, sobre o processo de inclusão e o papel dos professores de Química para atuar com estes alunos. Os dados foram constituídos através de entrevistas individuais com 24 licenciandos-bolsistas e as análises foram fomentadas por meio de discussões feitas com dez bolsistas em um Grupo Focal, ambos registrados com gravador de voz. Com caráter qualitativo e utilizando a Análise de Conteúdo foram elaboradas três grandes categorias que representam os objetivos deste trabalho, e as subcategorias presentes em cada uma foram analisadas de acordo com a Teoria do Núcleo Central, de forma, a saber, quais conceitos se encontram no sistema central ou no sistema periférico das RS desses futuros professores. Considerando que há um déficit na formação de professores de Química para atuar com alunos que possuam alguma deficiência, transtorno global de desenvolvimento ou super habilidades/superdotação, o Pibid se torna um importante processo formativo e experiencial, embora tenha sido observado que conceitos, que seriam desejáveis estar no Núcleo Central do RS de futuros professores, ainda estão nos sistemas periféricos dos mesmos. Assim, conclui-se sobre a urgência de modificações na formação acadêmica de professores vol... (Resumo completo, clicar acesso eletrônico abaixo)
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This study is driven by two competing perspectives, substitutive and complementary, to examine the effects of internal audit function quality and sourcing arrangements on external audit fees. The substitution perspective expects high-quality internal controls to substitute for external audit activities, thus, decreasing external audit fees. In contrast, the complementary perspective proposes that high-quality internal audit functions require more reviews and reports, leading to increased external audit fees. This study analyses the competing perspectives using a combined dataset from the Morningstar database and questionnaire responses from chief audit executives of listed Australian companies. This study established a composite measure of internal audit function quality based on five internal audit function attributes to assess the relationship between internal audit function quality and audit fees. An ordinary least square regression analysis of 408 listed Australian firms from 2017 to 2018 found a positive relationship between internal audit function quality and external audit fees. Analyses of sourcing arrangements for internal audits suggest that higher internal audit functions will increase audit fees regardless of firms’ sourcing arrangements. This study provides a much needed literary update given that previous literature focused on examining the internal audit function quality and audit fee linkage in Australia before 1 July 2004, when the Corporate Law Economic Reform Program No. 9 was introduced. The Corporate Law Economic Reform Program No. 9 seeks to improve investor confidence in publicly listed companies in Australia and regulates auditors’ engagement. There have been contentious debates about the costs and benefits of this law for Australian public companies. Effects from the Corporate Law Economic Reform Program No. 9 are captured in the observation window for this study (1 January 2017 to 31 December 2018), filling an important gap in the literature. This study also contributes to the internal audit outsourcing literature by exploring the relationship between the outsourcing arrangement of internal audit functions and the external audit fees among listed companies in Australia.

AbstractThe insurance sector has a very low degree of products’ personalization. This is because insurance companies are not adequately using the vast amounts of information that is available online. This chapter presents the under-explored avenue of using alternative or nontraditional sources of information to obtain data for the configuration of personalized insurance offers. Specifically, it illustrates how big data, synthetic data, and machine learning models can be used to draw up the risk map of companies in an individualized way. It also presents methods for constructing and offering insurance programs that are personalized to each business reality.

AbstractWe apply the concept of geoeconomics to the example of Chinese state-owned commercial banks based in Luxembourg and their financial activities in the European Union. The case study links the uneven relationship between China and Luxembourg to the field of international finance via large Chinese state-owned banks as important but analytically neglected actors. In doing so, we analyze how economic resources are used by, through and between nation states in the pursuit of their strategic goals. Starting from the observation that Chinese banking networks primarily provide a platform for the implementation of direct investments by Chinese companies, we identify important mechanisms and practices of Chinese banks, their anchoring in Luxembourg and the limited fulfilment of Western policy makers’ expectations from the presence of the Chinese banks in Luxembourg. Furthermore, we analyze instruments and strategies that define important aspects and dimensions of the concept of geoeconomics and complement them with the agency attributed to Chinese banks. An interesting paradox emerges from our analysis: while the geoeconomic power of Chinese banks’ activities is limited by the strict adherence to Chinese state development guidelines, the new organization of the Chinese banking networks in the EU suggests that they will be able to exercise their geoeconomic power in the future; with corresponding implications for local economies and economic development in Europe.

Abstract This chapter is about the financial system of Japan. It begins by detailing the different categories of financial intermediary in Japan and then describing the different types of financial instruments traded in Japan’s money markets and capital markets and in euromarkets (xenomarkets), taking note of the many amalgamations of the 1990s and sweeping changes in regulations culminating in the 2001 “Big Bang.” Until the 1980s, those regulations amounted to the cartelization of Japan’s commercial banks. The 1980s opening of euromarkets to Japanese corporations seeking funds forced banks to compete and led to an unraveling of the regulations that had until then cartelized their industry. As the bank profits eroded, their lending grew reckless, which led to the severe financial crisis of the 1990s, all of which the chapter fully explains. Despite the turmoil of the 1990s, banks have retained their dominance of Japanese financial intermediation. The chapter describes the main bank system, in which most Japanese corporations have each developed a special relationship with a particular bank that is its largest creditor and often also a shareholder. The advantages of bank shareholding in the companies to which they are lending are explained. The Modigliani–Miller theorem, the core idea in thinking about how corporations acquire funds, is invoked as an essential frame of reference in considering the main bank system. The chapter closes with a discussion of corporate governance in Japan which is also much affected by the bank dominance of financial intermediation.

The chronicler, Edmund Howes, the subject of chapter three, was interested in trade and, like his more illustrious contemporaries Francis Bacon (ch. 1) and William Camden (ch. 2), provided an analysis of the state's management of commercial affairs. Howes, however, had much closer connections with the workshops, warehouses and offices of the City than the other writers discussed in this book. And it was through describing the activities of individuals attached to these locales, the chapter argues, that he was able to develop a highly innovative account of English commercial history. In dealing with Howes' writing, the chapter begins by looking briefly at his life, before exploring the account of Jacobean immigration, manufacture and trading companies developed in the Annales (1615, 1632). The chapter's final section shows how Howes' work shaped the approach to Jacobean commerce of one of the most popular historical works of the seventeenth century: Richard Baker's Chronicle (1643).

This chapter explores the grant of injunctions to restrain calls on independent guarantees based on the unconscionability exception to the autonomy principle. Using Singapore law as the primary basis for discussion, it explains the rationale and operation of the unconscionability exception and its relationship with the traditional fraud exception. This approach is compared with the UK approach, and brief reference is also made to the position in Australia and the USA. The chapter argues that the unconscionability exception is a justifiable policy response to address the potentially oppressive nature of performance bonds. If used sparingly and confined within narrow limits, this approach will promote integrity in the call on performance bonds without affecting the commercial usefulness of these instruments. The chapter also examines the situation where the underlying contract is affected by frustration or force majeure—a question which has become of greater prominence after the COVID-19 pandemic—and discusses whether the grant of an injunction to restrain payment on a performance bond in these circumstances can be supported based on the fraud or unconscionability exception or some other principle.

This essay discusses the negotiation of postal contracts between the government and the private sector, and asks whether the state provided private sector shipping companies with excess returns. The essay also describes the operation of Royal Mail’s mail contracts and the development of its non-contract revenues; its commercial and financial returns, and finally compares its results with financial returns in the second half of the 19th century.

Globalization has created complex production chains, in which many countries contribute to the creation of added value. Globalization influences almost all aspects of life, but the way this evolution is felt differs from one country to another, from one region to another, from one individual to another. Globalization is an objective process that is taking place with astonishing speed, covering all the states of the world. It was determined and favored by the ultra-fast advances of technology, especially information technology, but also by the manifestations of the digital economy or information economy. Digitization has fundamentally changed the way companies operate while providing new entities with opportunities for survival and development. Websites have become powerful advertising and commercial tools, being used in all areas of activity. The technologies used to create and develop websites have diversified and become increasingly complex.

"A large number of studies on bankruptcy prediction are published every year. The topic of SME failure prediction has evolved over the past decades into a relevant research area that has grown exponentially across many disciplines, including finance and management, for obvious reasons. This has been motivated by the massive toll on SMEs caused by the global crisis of 2007-2009, the recent COVID-19 crisis and the resulting need to update indicators of SME failure. Many authors during the last fifty years have examined several possibilities to predict business failure. They have studied bankruptcy prediction models under different perspectives but still could not indicate the most reliable model. This paper focuses on the Czech economy, specifically at small and medium-sized enterprises (SMEs). This article aims to find if there exist different factors that could predict bankruptcy for manufacturing and commercial companies. Considering the research objective, the following hypotheses were set: H1: Indicators used in the financial distress model for manufacturing companies differ from commercial companies.; H2: Applying a model based on different segmentation criteria improves the reliability of bankruptcy prediction. It is the ongoing research about the value of several popular bankruptcy models that are often applied, namely the Altman Z-score, the Ohlson O-score, the Zmijewski's model, the Taffler's model, and the IN05 model. The logistic regression has been used to investigate around 1800 companies, of which 308 failed during 2010 – 2017. Reached results confirm both hypotheses and some suggestions arise from it. When we develop a bankruptcy model, it is necessary to sort companies according to different criteria. It also confirms findings of the last years literature review the closer the similarity of businesses, the greater accuracy of bankruptcy models. Further, it is required to exploit common used financial indicators with a combination of modified indicators to assess the probability of bankruptcy precisely."

Abstract Digital oil field is a terminology that frequently appeared in the last few years. In the era of industry 4.0 and the proliferation of digital technology, oil and gas companies need to adapt in order to gain advantage in business process development, and this term is the answer. In digital oil field, data is significantly valuable. Therefore, robust database and real time data monitoring need to be developed. Pertamina EP has established a robust, easy-to-access, and web-based database application called Operational Data Repository (ODR). This application handles end-to-end business process from exploration all the way to commercial. Several modules were integrated for this application and the main modules consist of exploration, exploitation, production, finance, safety and commercial. For every module in ODR, the first task to carry is to create and input master data. After database is created, calculation according to module's purpose is performed. Once the system is there, automatic data acquisition and monitoring will enter the picture. Exploration module in ODR handles database of Pertamina EP exploration activities. This module include lithology, biostratigraphy, and geochemical data of exploration project in Pertamina EP. This module ensures that initial data of a structure is preserved and available. Exploitation module deals with oil and gas reserves and resources reporting process, well proposal for annual work plan, and surface project monitoring. This module rules development phase from subsurface to surface. Production module shows daily operational activities, production data, and quadrant mapping of wells productivity. Data from this module is taken for evaluating production and operation performance. Finance module handles company's financial report, including revenue, expense, and tax. Safety module handles work permit, hazard identification, risk assessment and control for every project and work plan. Safety is a very important aspect in a company and this module ensures that documents needed to perform work safely is well-documented and easy to submit and access. Last but not least is commercial module. This module consists of gas sales agreement documents (GSA), metering system location, and customer complaints monitoring. ODR has already been well-established, therefore Pertamina EP started its pilot project for automatic data acquisition for eight wells and currently on monitoring phase. This paper describes Pertamina EP first step to digital oil field, which is developing virtual warehouse to store company's data. The step is strengthened with attempting for automatic data acquisition that will be integrated to the ODR for the next phase.

Collier County, Florida (“County”) is in the midst of developing an integrated waste management program. Unlike many counties, Collier County owns a landfill with sufficient long-term landfill capacity to last another 15 years. However, due to the Board of County Commissioner’s (“Board”) desire to have a 50-year solution for solid waste, the County has set upon a course to divert waste from the landfill to the maximum extent possible. In doing so, the County solicited long-term waste management solutions from private companies capable of processing the majority of the municipal solid waste generated in the County. Over the past two years, the County has considered several of these alternatives ranging from MSW composting to mass-burn waste-to-energy; however, based on an evaluation of a wide range of impacts, gasification was selected as the preferred alternative. With this focus, the County issued a Request for Proposal (“RFP”) in November 2001 for a design, build, own, operate, and finance gasification project. The County received three proposals in April 2002 in response to the RFP. To date, the County has completed the proposal evaluation process and has ranked the top two responsive firms: Interstate Waste Technologies (“IWT”) and Brightstar Environmental (Florida), LLC (“Brightstar”) based on experience, technical approach, business arrangement, and cost. If implemented, this project will be the only commercial gasification project operating in the United States. This paper will provide insight into various stages of the project, from development through to the current status of the project, as well as the strategic policy, financial, and technical considerations that make this opportunity a good fit for the County. An emphasis will also be placed on comparing and contrasting the benefits and drawbacks of each technology, such as processing methodology, cost, redundancy, and scalability.

“Energy cost increases are expected to continue.... The impact of these energy cost increases on attractiveness of energy recovery could be significant.” “A number of new technological developments have been underway over the past few years that are now becoming available as full-scale systems and that are greatly expanding the opportunities for energy recovery from mixed municipal waste.” These sound like statements from today’s headlines or the latest marketing brochures reflecting the promise of emerging waste management technologies. The reality is that these statements were made over thirty years ago. Communities planning on implementing any new technology as part of their solid waste management program should proceed with caution. After all, the second quote above was followed by the following statement. “These systems have generally been developed by firms in private industry as new business ventures. Monsanto, Union Carbide, Devco, Garrett Research and Development (a division of Occidental Petroleum), Hercules, Black-Clawson, Horner-Schiffrin and Combustion Equipment Associates have been some of the most active firms.” Although many communities relied upon performance and financial guarantees offered by these companies, none of projects developed by them were successful. Similarly, there was a wave of optimism and projects that were implemented in the 1990’s involving numerous mixed municipal waste biological (i.e., composting) projects that also failed for economic or technical reasons. From these prior experiences, lessons can be drawn to assist communities evaluate the risks and rewards in procuring and contracting for today’s emerging technologies. The waste being delivered to these failed projects, unlike some of the salespersons, did not go away. These failed projects had to be redeveloped and replacement projects implemented to deal with the daily tide at the curb. A number of consultants, including the authors, started in the solid waste business redeveloping some of these failed initial efforts. From these prior experiences, lessons can be drawn to assist communities evaluate the risks and rewards in procuring today’s emerging technologies. New thermal conversion, pyrolysis, gasification, and bioconversion technologies are being proposed for projects throughout the U.S. based on experience in North America, Europe, the Middle East and Asia. Many communities have issued RFP’s to include emerging technologies in their integrated solid waste management systems. To successfully procure and finance a project involving one of these emerging technologies, the project sponsor or developer will need to: • Locate a politically suitable site for the project; • Acquire waste supply commitments; • Develop energy and material sales approaches and agreements; • Arrange for residue disposal; • Obtain permits to operate; and • Arrange for the financing. In addition to the above components, the efficacy of the technology and the financial backing provided by the technology supplier are critical to a successful project. Not unlike the early 1970’s and 1990’s companies are promoting the advantages and successful applications of new approaches to solid waste management. In doing so, some companies are asking communities to provide a suitable site (usually adjacent to or near an exiting permitted landfill or other solid waste management facility), supply waste, dispose of any residue, and assist in the permitting of a new project. The company may take the responsibility to arrange for energy and material markets, obtain the permits, and finance the project. The company’s objective is to develop a demonstration of their technology using mixed municipal solid waste, or a portion of the waste stream, in a U.S. community from which it can build its business. Before entering into long term obligations associated with such arrangements, it is important that a community consider the following: • How much will it cost to deliver waste to the new facility? • What impact will it have on the balance of the solid waste management system? • If the new system does not work, is there an alternative location, both in the short- and long-run to process/dispose of the waste? • If there are odor or other environmental problems that cannot be mitigated, is there a way to terminate the operation of the facility? • If the project does not succeed, will the company be responsible for razing the facility and returning a clean site? What other obligations will the company have? • What are the obligations of the community if the project does succeed? • What is the definition of success? • How long must the project be successfully demonstrated before it is converted into a fully commercial operation? • If this involves an expansion of the project, is the community obligated to proceed? This presentation compares and contrasts the experiences of the past with the current approaches being taken by firms promoting these technologies and communities implementing them in the hope of learning from our past.. Case studies will be discussed to support the conclusions and recommendations presented.

Abstract Liquid mud plant (LMP) is a special dedicated built facility within the supply base where oil and gas companies operate to provide treatment, mixing and storage of drilling and completion fluids. The service can also be extended for drilling waste management in certain liquid mud plants. Historically in East Malaysia, each operator developed and operated their own separate liquid mud plant at the supply base since 2002. This resulted to bigger operating cost to the drilling industry since each LMP may not be fully utilized to its full capacity all the time especially during the downturn of oil price. To date, there are four LMPs in Labuan which are LMP1, LMP2, LMP3 and LMP4. This has led the biggest operator in Malaysia to take lead in integrating all the LMPs to become one shared facility to support all drilling operations in East Malaysia and finally resulting to reducing the well cost. A new systematic agreement was designed by putting all the facilities under one roof with longer duration for better operating expenditures but was still flexible for multiple operators to supervise each of their own operations. The governing authority plays a significant role in ensuring that there will be equitable sharing mechanism among operators. A frequent monitoring was established for a structured optimization of the facilities due to the dynamic operation of drilling operations. An integrated technical steering committee was established for the specific supervision of LMP operation with all the operators to further optimize the shared resources by sharing of drilling fluids, minimizing new built of drilling fluids and expensive brines. The specific payment mechanism was developed for fair cost distribution among the operators. This required collaboration with multiple parties for creating a process flow for finance and tax purpose. The first ever integrated agreement for LMP was successfully established in August 2019 by securing good commercial value for the long-term, hence reducing the operating costs. This resulted to greater efficiencies and maximum utilization with the LMP. The process of farming in the contract by the operators has been simplified. However, the biggest hurdle was implementing the most equitable sharing mechanism with minimum tax exposure. Eventually, a sustainable payment mechanism has successfully been created whereby all operators would be dealing with contractors directly instead of going through one operator alone. This initiative has reduced the overall LMP costs to drilling operation by sharing the common facilities and resources. An integrated long-term agreement was established for best commercial value by the LMP operator. The farm in process has been simplified as each operator has also already included into the agreement hence it has improved the efficiency by 80%.

This report examines changes in the production and commissioning of Australian television drama from 1999–2019, a period marked by notable changes in the business of television in Australia and globally. More production companies now make drama in Australia; however, the fact that more companies share less than half the annual hours once produced raises concerns about sustainability. Several major Australian production companies have been acquired by foreign conglomerates and challenge the viability of domestic companies that lack access to international corporate capital and distribution. The decrease in adult drama hours commissioned by commercial broadcasters has reshaped Australian television drama more than any other change. The national broadcasters have increased their role in commissioning, particularly in children’s drama. Titles have not decreased nearly as significantly as the number of episodes per series. Commercial broadcasters’ drama decreased from an average of 21 episodes per title in 1999 to seven in 2019, a 60 per cent decrease that, along with the increasing peripheralization of soaps, has diminished available training grounds and career paths in the Australian scripted production industry.