Journal articles on the topic 'Securities Australia'
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Guo, Qi. "What Lessons can the Luckin Coffee Scandal Offer to Australia–China Cross-Border Listed Companies’ Supervision? Problems and Reform Suggestions in China." Columbia Journal of Asian Law 35, no. 2 (August 17, 2022): 200–228. http://dx.doi.org/10.52214/cjal.v35i2.8932.
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The continuous disclosure compliance of Chinese cross-border companies listed in Australia has long been a concern, as Chinese companies are either frequently delisted or rejected by the Australian Securities Exchange. The particularity of cross-border listings generates information asymmetry between securities regulators based out of the host jurisdiction and the home jurisdiction. This then impacts the effectiveness of the host jurisdiction’s supervision of the cross-border listed companies and each company’s continuous disclosure compliance. The purpose of this article is to clarify the issues surrounding cross-border supervision by the securities regulators in China to shed light on current dilemmas and suggest possible reform proposals. Considering the similarities of the securities markets in the US and Australia, as a case study example, this article looks at Luckin Coffee, a US-listed Chinese company, which created a scandal in 2020 when it was accused of continuous disclosure fraud. The case points out relevant lessons for Australia–China securities cross-border supervision.
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Muir, Dana, Junhai Liu, and Haiyan Xu. "The Future of Securities Class Actions against Foreign Companies: China and Comity Concerns." University of Michigan Journal of Law Reform, no. 46.4 (2013): 1315. http://dx.doi.org/10.36646/mjlr.46.4.securities.
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In Morrison v. National Australia Bank Ltd., the U.S. Supreme Court limited the application of U.S. securities fraud law in transnational situations. The Supreme Court noted that its decision was influenced by international comity considerations. In this Article, we evaluate the availability of class actions in China in cases involving alleged securities fraud. Because we find that the availability of those actions is too limited to fully protect U.S. shareholders, we argue that U.S. investors should be permitted to bring securities fraud class actions against non-U.S. companies whose securities are traded on a U.S. exchange regardless of where those investors entered into the relevant securities transactions.
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Patch, R. "Personal Property Securities Reform in Australia." Uniform Law Review - Revue de droit uniforme 15, no. 2 (April 1, 2010): 459–63. http://dx.doi.org/10.1093/ulr/15.2.459.
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Hill, Jennifer G. "Regulatory Cooperation in Securities Market Regulation: Perspectives from Australia." European Company and Financial Law Review 17, no. 1 (March 5, 2020): 11–34. http://dx.doi.org/10.1515/ecfr-2020-0003.
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The global financial crisis highlighted the interconnectedness of international financial markets and the risk of contagion it posed. The crisis also emphasized the importance of supranational regulation and regulatory cooperation to address that risk. Yet, although capital flows are global, securities regulation is not. As a 2019 report by IOSCO notes, the regulatory challenges revealed during the global financial crisis have by no means dissipated over the last decade. Lack of international standards, or differences in the way jurisdictions implement such standards, can often result in regulatory-driven market fragmentation. This article considers a range of cooperative techniques designed to achieve international regulatory harmonization and effective financial market supervision. It includes discussion of a high profile cross-border supervisory experiment, the 2008 US-Australian Mutual Recognition Agreement, which was the first agreement of its kind for the SEC. The article also examines some key regulatory developments in Australia and Asia since the time of the US-Australian Mutual Recognition Agreement.
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Tomasic, Roman, and Brendan Pentony. "The prosecution of insider trading: Obstacles to enforcement." Australian & New Zealand Journal of Criminology 22, no. 2 (June 1989): 65–81. http://dx.doi.org/10.1177/000486588902200201.
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Insider trading has been criminalised in Australia for over a decade. Yet there have been few prosecutions in respect of such conduct, and none of these have been successful. There is little doubt that insider trading in Australia is extensive and is to be found across many sectors of the securities industry. Despite this, the law has not proved to be an effective vehicle for the social control of insider trading or for the deterrence of such conduct. It seems that the criminal sanctions for insider trading have been largely symbolic in nature. This article explores the obstacles to enforcement of criminal laws in this area by reference to findings from a national empirical study funded by the Criminology Research Council. The study involved in-depth interviews with almost 100 key figures in the Australian securities industry (brokers, lawyers, merchant bankers etc) and of officials involved in its regulation (from the Corporate Affairs Commissions and the Australian Stock Exchange). Problems in detection, proof and punishment, in the nature and extent of regulatory resources devoted to this area and in the content of the law itself are identified and discussed.
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Saayman, A., and P. Styger. "Securitisation in South Africa: Historic deficiencies and future outlook." South African Journal of Economic and Management Sciences 6, no. 4 (November 15, 2003): 744–64. http://dx.doi.org/10.4102/sajems.v6i4.1515.
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While American investors have been able to buy mortgage-backed securities since the late 1970s and asset-backed securities since the mid-1980s, investors in South Africa have not become involved in this growing market. Securitisation also spread to Europe, South America, Asia and Australia during the 1980s. The first securitisation in South Africa was completed in 1989, but since then only a few securitised products have been offered to the investment community. The aim of this article is to investigate the reasons for the lack of growth in securitisation in South Africa and to determine whether securitisation will grow to be a significant market in South Africa. The methodology used includes interviews held with investors, securitisation specialists and other structured finance specialists from the banking community. Experience from other countries is noted and included in this article
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Nyasha, Sheilla, and Nicholas M. Odhiambo. "The Australian stock market development: Prospects and challenges." Risk Governance and Control: Financial Markets and Institutions 3, no. 2 (2013): 39–48. http://dx.doi.org/10.22495/rgcv3i2art3.
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This paper highlights the origin and development of the Australian stock market. The country has three major stock exchanges, namely: the Australian Securities Exchange Group, the National Stock Exchange of Australia, and the Asia-Pacific Stock Exchange. These stock exchanges were born out of a string of stock exchanges that merged over time. Stock-market reforms have been implemented since the period of deregulation, during the 1980s; and the Exchanges responded largely positively to these reforms. As a result of the reforms, the Australian stock market has developed in terms of the number of listed companies, the market capitalisation, the total value of stocks traded, and the turnover ratio. Although the stock market in Australia has developed remarkably over the years, and was spared by the global financial crisis of the late 2000s, it still faces some challenges. These include the increased economic uncertainty overseas, the downtrend in global financial markets, and the restrained consumer confidence in Australia.
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Clout, Victoria J. "Corporate boards, monitoring and securities class actions: a pitch." Accounting Research Journal 30, no. 3 (September 4, 2017): 242–48. http://dx.doi.org/10.1108/arj-07-2016-0090.
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Purpose The purpose of this paper is to apply Faff’s (2015) pitch template to a regulatory financial accounting research topic. The author describes her personal reflections on completing the pitch template for this project by investigating corporate boards, monitoring and securities class actions (SCAs) in Australia. The author builds on prior research in this area (Chapple et al., 2014). This study is set within prior literature examining capital markets, corporate governance, continuous disclosure regime and regulatory changes. The market reaction to corporate board changes pre- and post-SCAs is the focus of the examination within the pitch template. The pitch letter contributes to prior literature, as it demonstrates a team with established researchers using the pitch template, while prior papers have documented PhD student usage of the pitch template. Design/methodology/approach The author uses the Faff (2015) pitch template to focus the research team’s ideas into a concisely focused research idea. An earlier version of this pitch was presented at the Centre for International Finance and Regulation Pitching Research Symposium on 29 May 2015 in Sydney to a panel of distinguished professors and participants from market regulators including the Australian Securities and Investments Commission, Reserve Bank of Australia, Australian Prudential Regulation Authority and the financial sector including Colonial First State. Findings It was found that there are benefits to using the pitch template for both established and emerging researchers. Prior pitch papers have primarily been authored by PhD students. This paper’s aim was to provide evidence that established as well as emerging scholars can benefit from completing the Faff pitch template. Originality/value This pitch letter contributes to the research community, as it shows the process and personal reflections on undertaking the pitch exercise by a team including established and emerging researchers. Within this pitch letter there is a documentation of how the research team for the underlying project was formed and the prior experiences of the team.
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Bianchi, Robert J., Michael E. Drew, and Timothy Whittaker. "The Predictive Performance of Asset Pricing Models: Evidence from the Australian Securities Exchange." Review of Pacific Basin Financial Markets and Policies 19, no. 04 (December 2016): 1650023. http://dx.doi.org/10.1142/s0219091516500235.
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This paper considers the accuracy (or otherwise) of cost of equity estimates provided by a range of Australian asset pricing models on industry returns. The results suggest that a simple, constant-benchmark approach (fixed excess return of five percent per annum) provides the best forecast for the cost of equity capital for the various industry segments of the Australian Securities Exchange examined across the observation window. Our results from Australia corroborate U.S. findings regarding the disconnect between asset pricing models that provide the best ex-post explanation of asset returns and models that produce superior ex-ante predictions of the cost of capital.
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Kaal, Wulf A. "Extraterritorial Application of US Securities Law: Will the US Become the Default Jurisdiction for European Securities Litigation?" European Company Law 7, Issue 3 (June 1, 2010): 90–97. http://dx.doi.org/10.54648/eucl2010019.
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Pending case law by the US Supreme Court (Morrisson v. National Australia Bank) and draft legislation in Congress threaten to expand the jurisdiction of US courts to cases where foreign, i.e. non US, plaintiffs sue foreign defendants over securities purchased in foreign securities markets. This article describes the many aspects of this threat, in particular for European investors, brokers, banks and ... lawyers.
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Chitimira, Howard. "A Comparative Synopsis of the Enforcement of Market Abuse Prohibition in Australia and South Africa." African Journal of Legal Studies 9, no. 1 (June 29, 2016): 46–77. http://dx.doi.org/10.1163/17087384-12342068.
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In Australia, the market abuse prohibition is generally well accepted by the investing and non-investing public as well as by the government. This co-operative and co-ordinated approach on the part of all the relevant stakeholders has to date given rise to an increased awareness and commendable combating of market abuse activities in the Australian corporations, companies and securities markets. It is against this background that this article seeks to explore the general enforcement approaches that are employed to combat market abuse (insider trading and market manipulation) activity in Australia. In relation to this, the role of selected enforcement authorities and possible enforcement methods which may be learnt from the Australian experience will be isolated where necessary for consideration in the South African market abuse regulatory framework.
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Chikolwa, Bwembya. "The Development of Commercial Mortgage-Backed Securities in Australia." Pacific Rim Property Research Journal 13, no. 4 (January 2007): 397–422. http://dx.doi.org/10.1080/14445921.2007.11104239.
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Chikolwa, Bwembya. "Structuring Issues for Commercial Mortgage-Backed Securities in Australia." Pacific Rim Property Research Journal 14, no. 3 (January 2008): 334–55. http://dx.doi.org/10.1080/14445921.2008.11104262.
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Dodge, William S. "The Presumption Against Extraterritoriality in Two Steps." AJIL Unbound 110 (2016): 45–50. http://dx.doi.org/10.1017/s2398772300002385.
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For the past twenty-five years, the presumption against extraterritoriality has been the Supreme Court’s principal tool for determining the geographic scope of federal statutes. In 2010, Morrison v. National Australia Bank used the presumption to decide the scope of Section 10(b) of the Securities Exchange Act, which prohibits securities fraud. Morrison approached the question in two steps. First, it looked for a “clear indication of extraterritoriality” to rebut the presumption and found none. Second, it looked to see if application of the statute would be domestic or extraterritorial by examining the “focus” of the provision. Plaintiffs argued that applying Section 10(b) would be domestic because the alleged fraud occurred in the United States, although they had bought their shares in Australia. The Court disagreed, holding that application of Section 10(b) would be extraterritorial because “the focus of the Exchange Act is not upon the place where the deception originated, but upon purchases and sales of securities in the United States,” and in this case the transaction occurred abroad.
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Marlin, Clare, and Amanda Westcott. "Leading Financial Literacy in Australia." Applied Finance Letters 2, no. 1 (June 30, 2013): 4. http://dx.doi.org/10.24135/afl.v2i1.8.
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In Australia financial literacy work nationally is guided by the principles of the NationalFinancial Literacy Strategy, a collaborative multi-agency strategy coordinated by theAustralian Securities and Investments Commission (ASIC). This provides a framework for manyagencies and organisations to work in partnership to develop and deliver initiatives to improvethe financial literacy of all Australians. This article highlights the thinking behind the strategy,presents examples of the strategy in action, and foreshadows next steps. Above all, it arguesthat the challenges of improving financial literacy are best shared – i.e. that a collaborativeapproach between sectors and countries remains the most effective way forward
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Munggaran, Elis Asri, and I. Gede Sudi Adnyana. "Analysis Of Conservatism Accounting And Conflict Bondholders-Shareholder Against Quality Of Profit In Indonesia And Australia And Its Comparison." Riset 2, no. 2 (September 26, 2020): 264–76. http://dx.doi.org/10.35212/riset.v2i2.57.
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This study aims to determine the effect of accounting conservatism and the conflict of bondholder-shareholders on the companies' earnings quality that list on the Indonesian Stock Exchange (IDX) and the Australian Securities Exchange (ASX). Besides, this study also aims to determine differences in Indonesia's earning quality level and Australia financial statements. The research method used is a quantitative statistical analysis using the classic assumption test, multiple regression analysis, T-test, and F test by a significance level of 5%. This study's independent variable (X) is accounting conservatism and shareholder bondholder conflict with the dependent variable (Y), earnings quality. The result of the analysis that has been done proves that partially and simultaneously, accounting conservatism has a significant effect on the earning quality in Indonesian and Australian companies.
Meanwhile, in the study of the bondholder-shareholder conflict on earning quality shows that it does not affect achieving quality. But, simultaneously, it involves reaching quality in Indonesian and Australian companies. Meanwhile, based on descriptive statistical analysis, earnings quality in Australia is better than in Indonesia.
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Morgut, Milosz. "Extraterritorial Application of U.S. Securities Law." European Business Law Review 23, Issue 4 (July 1, 2012): 547–63. http://dx.doi.org/10.54648/eulr2012030.
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The globalization of securities industry resulted in many corporations deciding to cross-list on numerous exchanges and investors commonly trading on foreign markets. The multitude of overlapping regulatory regimes poses difficult questions not only for legal theorists but most importantly for the investors who seek remedies after suffering multibillion losses as a result of being deceived. The paper discusses the U.S. Supreme Court decision in Morrison v. National Australia Bank which dramatically changed the way in which the US securities regulation applies to foreign claims. The analysis looks at the judgments of lower courts in order to establish the real scope of the decision. Bearing in mind the new landscape in international securities litigation, the available courses of action which can be still taken by injured investors are presented. Finally, the paper evaluates the overall decision and its effect, suggesting certain legislative changes.
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WRIGHT, SUSAN J. "THE FUTURE OF THE MARKET FOR MORTGAGE-BACKED SECURITIES IN AUSTRALIA." Economic Papers: A journal of applied economics and policy 8, no. 1 (March 1989): 12–25. http://dx.doi.org/10.1111/j.1759-3441.1989.tb01054.x.
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Biswas, Pallab Kumar, Mansi Mansi, and Rakesh Pandey. "Board composition, sustainability committee and corporate social and environmental performance in Australia." Pacific Accounting Review 30, no. 4 (November 5, 2018): 517–40. http://dx.doi.org/10.1108/par-12-2017-0107.
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PurposeThe purpose of this study is to examine the impacts of board gender composition, board independence and the existence of a board sustainability committee on the corporate social and environmental performance of Australian firms.Design/methodology/approachThe dataset comprises 2,188 Australian Securities Exchange listed firm-year observations (407 individual firms) from 2004 to 2015. The ASSET4 environmental, social and governance database is used to measure corporate social and environmental performance and their sub-dimensions.FindingsOur results show that firms with higher board gender composition, greater board independence and sustainability committees tend to have better social and environmental performance. This paper also provides empirical evidence of the positive association of these variables on the sub-dimensions of social and environmental performance. The results are robust after controlling for self-selection and various forms of endogeneity.Originality/valueThis is the first study that examines the relationship between sustainability committees and corporate social and environmental performance in the context of Australia. This study also overcomes the relatively small sample size and shorter study period issues of similar studies in Australia that provide inconclusive evidence on the relationship between each of board gender composition, board independence and corporate social and environmental performance.
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Thomson, Dianne, and Ameeta Jain. "Corporate Governance Failure And Its Impact On National Australia Banks Performance." Journal of Business Case Studies (JBCS) 2, no. 1 (January 1, 2006): 41–56. http://dx.doi.org/10.19030/jbcs.v2i1.4879.
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The National Australia Bank (NAB) is the largest financial services institution listed on the Australian stock exchange and is within the 30 most profitable financial services organisation in the world. In January 2004, the bank disclosed to the public that it had identified losses relating to unauthorised trading in foreign currency options amounting to AUD360 million. This foreign exchange debacle was classified as operational risk, the risk of loss resulting from inadequate or failed processes, people, or systems and reiterated the importance of corporate governance for banks. Concurrent issues of National Australia Banks AUD4.1 billion loss on US HomeSide loans in 2001, the degree of strength of their risk management practices and lack of auditor independence, were raised by the US Securities and Exchange Commission in 2004, reinforcing the view that corporate governance had not been given the priority it deserved over a number of years. This paper will assess and critically analyse the impact of corporate governance failure by management and Board of Directors on NABs performance over the years 2001-2005.
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International Monetary Fund. "Australia: IOSCO Objectives and Principles of Securities Regulation—Detailed Assessment of Implementation." IMF Staff Country Reports 12, no. 314 (2012): 1. http://dx.doi.org/10.5089/9781475563412.002.
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McMullen, Arthur L., and Warren Chung. "Not all barrels are created equal: understanding the difference between standards of regulatory disclosure can impact your investment decisions." APPEA Journal 57, no. 2 (2017): 506. http://dx.doi.org/10.1071/aj16048.
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Petroleum industry stakeholders rely on estimates of petroleum reserves and resources as a cornerstone for making informed strategic investment decisions. Whether assessing a property or corporate target in a mergers and acquisitions process, seeking or providing equity or debt financing, developing upstream or downstream projects, engaging in sales contract negotiations or satisfying regulatory disclosure requirements, a clear understanding of the basis of these estimates is critical. Worldwide, several standards of resource estimation are widely accepted (Society of Petroleum Engineers Petroleum Resources Management System (SPE-PRMS), Securities and Exchange Commission (SEC) guidelines and Canadian Oil and Gas Evaluation Handbook (COGEH)) and disclosure requirements depend on the regulatory jurisdiction (i.e. Australia, Australian Stock Exchange (ASX) Listing Rules Chapter 5; USA, SEC Regulation S-K; Canada, NI 51-101). Understanding the differences in these standards is imperative for correctly assessing value, development potential and project risks. Focusing on Australia, the United States of America and Canada, this presentation identifies key differences in these standards, and the potential implications affecting your strategic investment decisions.
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Kapardis, M., and A. Kapardis. "Co-Regulation of Fraud — Detection and Reporting by Auditors in Australia: Criminology's Lessons for Non-Compliance." Australian & New Zealand Journal of Criminology 28, no. 2 (June 1995): 193–212. http://dx.doi.org/10.1177/000486589502800205.
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All companies (other than exempt proprietary ones) are required by the Corporations Law to have their books audited. For about 150 years there has been a controversy surrounding the auditors' role — whether they should be functioning as a ‘watchdog’ or a ‘bloodhound’. In recent years the auditing profession in Australia has been experiencing a credibility crisis. A spate of much publicised corporate collapses in the late 1980s at a time of economic recession has been instrumental in: (i) the Australian Securities Commission (ASC) adopting more heavy-handed ways of policing auditing standards; (ii) rocketing audit fees; and (iii) the accounting bodies redefining their role and revising auditing standards. This paper focuses on current approaches to regulating the auditing profession, and discusses their effectiveness, drawing on the criminological literature relevant to professional advisers, white collar illegality, and deterrence.
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Buxbaum, Hannah L. "Morrison v. National Australia Bank: Defining the Domestic Interest in International Securities Litigation." Proceedings of the ASIL Annual Meeting 105 (2011): 402–5. http://dx.doi.org/10.5305/procannmeetasil.105.0402.
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Latimer, Paul, and Michael Duffy. "Deconstructing Digital Currency and Its Risks: Why ASIC Must Rise to the Regulatory Challenge." Federal Law Review 47, no. 1 (March 2019): 121–50. http://dx.doi.org/10.1177/0067205x18816237.
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Digital currency is a ‘disrupter’ of financial services and currency markets, and as such presents new regulatory challenges. International regulatory responses to digital currency range from being largely ignored in some jurisdictions to being banned in others, with most jurisdictions charting a middle course of ‘wait and see’ while attempting to deal with pressing issues (such as taxation liability and potential money laundering and terrorism financing issues). This article explains digital currency, its benefits, its problems, its risks and the regulatory response so far. It analyses the extent to which the Australian Securities and Investments Commission (ASIC, the national securities regulator) may or may not have regulatory power and jurisdiction under existing Australian law, and the role of other relevant regulators and institutions. It concludes that digital currency may well be a ‘financial product’ under Corporations Act 2001 (Cth) s 763A (though many suppliers/issuers of that product will be website operators located outside Australia). If it is a financial product, ASIC would also have jurisdiction over issuers and markets that trade in that product. This conclusion could easily be fortified by legislative confirmation; however, it is suggested that ASIC should in all events test its powers to determine whether any legislative change is needed. Regulation by ASIC would add to recent moves to deal with digital currency by the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Australian Taxation Office (ATO). In all cases, this article argues that the time has come for Commonwealth regulation of digital currencies by ASIC as the relevant regulator. This would then trigger the obligations set out in the Corporations Act and the ASIC Act, including Australian Financial Services Licensing, Australian Market Licensing, standards of efficiency, honesty and fairness, disclosure provisions, possible market offences and corporate regulation generally. The suggested jurisdiction of ASIC would build on its existing role as well as the roles of the Australian Competition and Consumer Commission, the ATO and AUSTRAC.
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Pathak, Shaakalya, and Foo See Liang. "Australia’s Publicly Listed Manufacturing Companies – Analysing the connection between Return on Equity (ROE) and Altman Z-Scores." Archives of Business Research 8, no. 12 (January 15, 2021): 110–17. http://dx.doi.org/10.14738/abr.812.9542.
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Australia’s economy is considered to be a highly developed market economy and a reasonably large economy globally. This article seeks to analyse the connection between the business, or financial health, as measured by the Altman Z-Score, and corporate performance, as measured by the Return on Equity (ROE), of listed manufacturing companies in this market (the ASX or Australian Securities Exchange). A linear regression has been performed between these variables to ascertain the extent and direction of their relationships. The trends of Z-Scores over a five-year period have also been examined. The study covers the period from 2013 to 2017 (inclusive) and yields a statistically positive correlation between ROE and the Z-Score for the market. Australia registered moderate-to-strong mean and median Z-Scores. These findings further support the strong economic position of this market as a business giant.
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Barrymore, Stuart J., and Jane Ballard. "Decommissioning – a path forward for Australia." APPEA Journal 59, no. 1 (2019): 25. http://dx.doi.org/10.1071/aj18143.
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Australia has embarked on a review of its decommissioning law and practice with a comprehensive discussion paper being issued by the Department of Industry, Innovation and Science. Initial stakeholder comments and submissions have been made, and the Department is now considering those submissions with a view to issuing recommendations to the Minister. The discussion paper ultimately proposes that new laws will be implemented to ensure that Australia has a 21st century fit-for-purpose decommissioning regime to apply to its offshore petroleum installations. After an overview of the review process and the selected issues that the Department regards of significance, this article considers a selection of the issues that emerge. It is evident that diverse views exist on almost all topics, and it will not be an easy task to find a balance that both meets the goals and aspirations of industry and community sectors. This challenge is compounded by the scale of decommissioning operations and the cost that will be incurred to remediate wells and remove associated facilities. The balance sought is one that does not stifle industry’s capacity to further invest nor impose onerous or uncompetitive imposts or controls, but also assures that adequate funding is available to carry out decommissioning works. Everyone seemingly accepts that it is not the role of the Australian Government to remove the facilities and restore the sea bed. Globally, techniques that are being increasingly utilised to manage this risk involve the imposition of securities or other assurance and enhanced statutory liability mechanisms. These legal and commercial considerations are given particular focus in the article.
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Mohamad, Abdul Hamid. "Ethical Dimensions in Islamic Finance: The Way Forward." ICR Journal 4, no. 1 (January 15, 2013): 141–42. http://dx.doi.org/10.52282/icr.v4i1.499.
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At a seminar organised by the Securities Commission about two years ago on the financial crisis in the West, I asked a professor from Australia whether the crisis was a result of the system itself, or of the abuse of the system. He replied, “Abuse.” Then I said, “Well, if it is abuse, then abuse may also happen in the Islamic system.” He agreed, but argued that there was a difference because the Islamic system is faith-based.
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Solaiman, S. M. "Investor protection by securities regulators in the primary share markets in Australia and Bangladesh." Journal of Financial Crime 16, no. 4 (October 9, 2009): 305–33. http://dx.doi.org/10.1108/13590790910993735.
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Nguyen, Thang Cong, Tan Ngoc Vu, Duc Hong Vo, and Michael McAleer. "Systematic Risk at the Industry Level: A Case Study of Australia." Risks 8, no. 2 (April 13, 2020): 36. http://dx.doi.org/10.3390/risks8020036.
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The cornerstone of the capital asset pricing model (CAPM) lies with its beta. The question of whether or not beta is dead has attracted great attention from academics and practitioners in the last 50 years or so, and the debate is still ongoing. Many empirical studies have been conducted to test the validity of beta within the framework of CAPM. However, it is a claim of this paper that beta at the industry level has been largely ignored in the current literature. This study is conducted to examine if beta, proxied for a systematic risk, should be considered valid in the application of the CAPM at the industry level for Australia using daily data on 2200 stocks listed on the Australian Securities Exchange from January 2007 to 31 December 2016. Various portfolio formations are utilized in this paper. General economic conditions such as interest rate, inflation, and GDP are examples of systematic risk. Findings from this study indicate that the selection of portfolio construction, estimation technique, and news about economic conditions significantly affects the view whether or not beta should be considered as a valid measure of systematic risk.
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Liow, Kim Hiang, and Zhuo Lee. "International Real Estate Review." International Real Estate Review 16, no. 2 (August 31, 2013): 147–65. http://dx.doi.org/10.53383/100168.
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The main contribution of this study is to examine the extreme dependence between the real estate securities and stock markets in Australia, China, Hong Kong, Japan, Malaysia, the Philippines, Singapore and Taiwan between January 1995 and March 2011. For each market, we derive time series tail dependence coefficients (TDC) which measure how likely financial returns move in extreme market conditions by using the dynamic conditional correlation (DCC) methodology provided by Engle (2002). Overall, our results indicate that Singapore, the Philippines and Hong Kong have the highest extreme real estate–stock market co-movement of at least 50%. In addition, during the global financial crisis (GFC) period, the securitized real estate and common stock markets in China, Hong Kong, Japan, the Philippines and Singapore displayed the highest extreme dependence to react together to financial turmoil. The results in this paper also show that the extreme dependence patterns of real estate stock markets are similar for many of the Asia-Pacific economies. Finally, correlation coefficients are not adequate for explaining extreme co-movements between the securitized real estate and common stock markets in the longer period, as well as in the two-year GFC periods. Our TDC modeling with Asia-Pacific securitized real estate and stock markets provide useful information and advice to international investors and risk management personnel in tactical asset allocation so as to manage the extreme dependence between securitized real estate and common stock market.
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Shirai, Sayuri, and Eric Alexander Sugandi. "Cross-Border Portfolio Investment and Financial Markets Development in the Asia and Pacific Region." International Business Research 12, no. 5 (April 17, 2019): 14. http://dx.doi.org/10.5539/ibr.v12n5p14.
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This study examines cross-border portfolio investment in the Asia and Pacific region throughout 2001–2017, where rapid increases in investment have taken place particularly after the 2008–2009 global financial crisis. Cross-border portfolio investment in this region has the following characteristics. First, equity has been a dominant source of foreign liabilities notwithstanding efforts to develop bond markets in the region. Second, debt securities have remained dominant foreign assets held by the region. Third, the region’s assets and liabilities linkages have remained overwhelmingly strengthened against the United States and the European Union. However, the region has also witnessed greater intra-regional financial integration, centering at China with growing linkages with Hong Kong and Singapore. Fourth, Japan as a country with the largest abundant domestic capital in the region has remained predominantly exposed to the United States and the European Union. Within the region, nonetheless, debt securities issued by Australia have increasingly attracted Japan’s capital.
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McKinnon, Malcolm. "UNCITRAL Receivables Convention: The Possibility for Trans-Tasman Harmonisation." Victoria University of Wellington Law Review 34, no. 3 (August 1, 2003): 521. http://dx.doi.org/10.26686/vuwlr.v34i3.5770.
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This paper examines the UNCITRAL Convention on the Assignment of Receivables in International Trade as it affects New Zealand. The focus of the paper is on the potential effect of the Convention on New Zealand's relationship with Australia. The law in the two countries is very different especially since the passing of New Zealand's Personal Property Securities Act 1999, which is, the author concludes, highly compatible with the UNCITRAL Receivables Convention. The paper considers two sample transactions to illustrate the effects of the Convention in a trans-Tasman context. It concludes that where the Convention (if it enters into force in New Zealand and Australia) applies, there are relatively few complications. Where it does not apply, however, parties to trans-Tasman receivables transactions face complicated applicable law arguments and general uncertainty.
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de Clerck, Wouter J. L., Jeffrey D. Rotenberg, and Jean-Pierre Douglas-Henry. "International Class Actions: Will the Centre of Gravity Shift from the US towards Europe?" European Company Law 9, Issue 3 (June 1, 2012): 174–79. http://dx.doi.org/10.54648/eucl2012027.
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On 17 January 2012 the Appeals Court in Amsterdam, the Netherlands concluded class settlement proceedings in the Converium securities litigation. In its decision the court made explicit reference to the 2010 United States (U.S.) Supreme Court judgment in Morrison v. National Australia Bank. It is interesting to consider these decisions - which have sparked debate in their respective jurisdictions - from a trans-Atlantic perspective more specifically. The decisions in the Converium case confirm the Netherlands as the pre-eminent European centre for the settlement of international collective claims outside of the U.S.
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Hsu, Grace C. M., Peter Clarkson, and Annabelle X. Ouyang. "Do biotechnology and health-care firms have poorer continuous disclosure practices as reflected in ASX queries?" Accounting Research Journal 32, no. 2 (July 1, 2019): 88–112. http://dx.doi.org/10.1108/arj-12-2015-0152.
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Purpose The purpose of this study is to investigate whether biotechnology and health-care firms in Australia have poorer continuous disclosure (CD) practices as reflected in Australian Securities Exchange (ASX) queries relative to other firms. Design/methodology/approach Univariate tests and multivariate logit regressions are used to examine whether the frequency and nature of ASX queries and firms’ replies to price queries differ between biotechnology/health-care firms and the control firms. Findings Results suggest that biotechnology/health-care firms are more likely to receive volume queries and ASX Listing Rule 4.10 queries. They are also more likely to respond to price queries with new information relative to the control firms. However, biotechnology/health-care firms do not otherwise have statistically significantly different CD practice compared to the control firms, as reflected by the frequency and attributes of various types of ASX queries and by the way firms reply to price queries. Practical implications Evidence from this study can help evaluate the adequacy and enforcement of CD requirements and the need for further improvement. Investors can also use the evidence to better understand the information risks associated with investment in the biotechnology/health-care industry. Originality/value Prior research has not used multivariate methods to examine biotechnology/health-care firms’ CD practice in Australia or to examine accounting determinants of different types of ASX queries and firms’ responses to price queries.
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Jia, Jing, Zhongtian Li, and Lois Munro. "Risk management committee and risk management disclosure: evidence from Australia." Pacific Accounting Review 31, no. 3 (August 5, 2019): 438–61. http://dx.doi.org/10.1108/par-11-2018-0097.
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Purpose This paper aims to examine the relationship between risk management committees (RMCs) and risk management disclosure (RMD) quality. Specifically, the existence of stand-alone RMCs and a number of RMC characteristics, including RMC size, RMC independence, number of RMC meetings and RMC members’ human capital is investigated. Design/methodology/approach The sample comprises top 100 Australian Securities Exchange (ASX)-listed companies during the period between 2010 and 2012, when RMD began to be guided by detailed recommendations in Australia. Following the RMD framework used by Jia et al. (2016), RMD quality is measured based on its quantity, relevance, width and depth. Ordinary least squares (OLS) regressions were used to test the relationship between stand-alone RMC, RMC characteristics and RMD quality. Findings The results show that the existence of a stand-alone RMC, the human capital of RMC and RMC size are positively associated with RMD quality. In contrast, RMC independence and the number of RMC meetings are not found to have a significant association with RMD quality. Originality/value This study contributes to the current RMD literature by investigating whether a stand-alone RMC and different RMC characteristics are associated with RMD quality. The results of this study provide useful and new empirical evidence about the relationship between RMCs and RMD quality for researchers, companies, and regulators.
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Diamond, Peter A. "Proposals to Restructure Social Security." Journal of Economic Perspectives 10, no. 3 (August 1, 1996): 67–88. http://dx.doi.org/10.1257/jep.10.3.67.
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This paper discusses five proposed changes in Social Security: indexing the normal retirement age to life expectancy (as Sweden is doing); investing part of the trust funds in private securities; partial privatization (as has been proposed by Senators Kerrey and Simpson, Sweden is doing and Mexico has done); replacing Social Security by individually mandated savings (as was done in Chile in 1981); and mandating employer provided retirement savings (as recently legislated in Australia and is effectively the case in some European countries.) The economics of Social Security and the politics of restoring (and preserving) actuarial balance are discussed.
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Morri, Giacomo, and Federico Romito. "An international analysis of time varying beta risk in listed real estate securities." Journal of Property Investment & Finance 35, no. 2 (March 6, 2017): 116–34. http://dx.doi.org/10.1108/jpif-07-2016-0052.
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Purpose Listed real estate securities have historically been used to achieve an exposure to the real estate asset class and to obtain a broad spectrum of other specific features such as return enhancement, but whether they must be associated to the direct property or to the broad stock market is deceptive on a merely theoretical basis. Moreover, the global financial crisis (GFC) has questioned their risk/return characteristics. The purpose of this paper is to asses if listed real estate securities are still enough dissimilar from the broad stock market to provide remarkable diversification benefits for a long term investor. Design/methodology/approach The analysis has been developed on the FTSE EPRA/NAREIT Developed Index and at country level (USA, UK, France, Japan, Singapore, Hong Kong and Australia) from November 2001 to October 2013. The authors analysed the real estate index over a broad market index and adjusted for a possible bias related to heteroskedasticity and autocorrelation, using a least squared regression with Newey-West HAC Correction. A Recursive Least Squares (RLS) was also used to test the stability of the parameters with the CUSUM squared test and the Chow test. Finally the authors tested for cointegration with the Augmented Dickey Fuller and the Engle Granger tests. Findings The authors found that after the GFC the Beta-risk related to the stock market has witnessed a sharp increase, but with differences among country. While the USA, the UK and France have experienced a trend similar to the one described for the FTSE EPRA/NAREIT Developed Index, Asian Markets depict a quite stable Beta over the full sample (gradual increase for the Australian market). Evidence of a structural break in conjunction with 2008 crisis has been found only in USA, UK and France. Practical implications Listed real estate securities, even if characterised by time varying Beta-risk and partially reduced diversification benefits, are still worth to be included in long term horizon portfolios. However, more wary considerations should be drafted before investing in the Asian markets where evidence of cointegration was found only for the Japanese market. Originality/value Analysis of post GFC effect on direct property investment vs indirect listed investment worldwide.
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Shannon, Victoria. "Recent Developments in Third-Party Funding." Journal of International Arbitration 30, Issue 4 (August 1, 2013): 443–52. http://dx.doi.org/10.54648/joia2013028.
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This article addresses recent developments in third-party funding that occurred during late 2012 and early 2013 in the three leading jurisdictions: Australia, the United Kingdom and the United States. The most important developments are the following. On 22 April 2013, the Australian Securities and Investment Commission (ASIC) issued regulatory guidelines clarifying the status of funders with respect to ASIC's regulations and detailing how funders should manage conflicts of interest and handle certain provisions of their funding arrangements. In the United Kingdom, the Jackson Reforms took effect on 1 April 2013, bringing sweeping changes to the allowable fee agreements, discovery rules and cost allocations in that jurisdiction. In the United States, at least twenty pieces of legislation have been filed in various state legislatures since the beginning of 2013 aimed at regulating the third-party funding industry in a variety of different ways. Thus, in these three leading third-party funding jurisdictions, it appears that the legislatures - rather than the courts - are seeking to lead the way in shaping the future of the third-party funding industry.
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Khalid, Maryam, and Sherin Kunhibava. "FINTECH REGULATORY SANDBOXES IN AUSTRALIA AND MALAYSIA: A LEGAL ANALYSIS." IIUM Law Journal 28, no. 1 (June 30, 2020): 1–35. http://dx.doi.org/10.31436/iiumlj.v28i1.475.
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With the era of digitalization, regulatory sandboxes have been the trend adopted by most financial regulators around the world in regulating financial technology (fintech). Regulatory sandboxes act as a pilot programme to regulate fintech services and products with several legal exemptions given to the service providers within established parameters. In 2016, the Australian Securities and Investments Commission and the Malaysian Central Bank followed the United Kingdom’s Financial Conduct Authority (FCA) to introduce regulatory sandboxes within their legal framework. To date, previous literature has only provided a minimal analytical overview of the Malaysian and Australian regulatory sandbox. Hence, this article aims to fill that gap in literature. The methodology used for this study is both doctrinal and comparative legal analysis. The main objective of this study is to analyse the key characteristics of fintech regulatory sandboxes by comparing the Australian and Malaysian regulatory structures of these sandboxes. Due to nascent nature of Malaysian and Australian fintech regulations, this contributes to the growing knowledge in the financial regulation literature. Moreover, the findings on the operation of the regulatory sandboxes in both jurisdictions is expected to bring practical value for further research.
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Merrett, David T., and Simon Ville. "Financing Growth: New Issues by Australian Firms, 1920–1939." Business History Review 83, no. 3 (2009): 563–89. http://dx.doi.org/10.1017/s0007680500003007.
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An expanding economy, new technologies, and changing consumer preferences provided growth opportunities for firms in interwar Australia. This period saw an increase in the number of large-scale firms in mining, manufacturing, and a wide range of service industries. Firms unable to rely solely on retained earnings to fund expansion turned to the domestic stock exchanges. A new data set of capital raisings constructed from reports of prospectuses published in the financial press forms the basis for the conclusion that many firms used substantial injections of equity finance to augment internally generated sources of funds. That they were able to do so indicates a strong increase in the capacity of local stock exchanges and a greater willingness of individuals to hold part of their wealthin transferable securities.
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Seamer, Michael, and Adrian Melia. "Remunerating non-executive directors with stock options: who is ignoring the regulator?" Accounting Research Journal 28, no. 3 (November 2, 2015): 251–67. http://dx.doi.org/10.1108/arj-12-2013-0092.
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Purpose – This paper aims to investigate the incidence of remunerating Australian Securities Exchange (ASX)-listed non-executive directors (NEDs) with options and to determine whether companies that fail to adhere to NED remuneration recommendations share a common corporate governance profile. Despite corporate regulators condemning the practice of remunerating NEDs with stock options, there is a paucity of evidence regarding its prevalence in Australia. Design/methodology/approach – Focusing on ASX400 companies during 2008, a series of hypotheses relating NED stock option remuneration and corporate governance are tested using logistic regression. Findings – The study shows that the prevalence and quantum of NED option payments during 2008 was considerable with 73 of the ASX400 companies, including options in NED remuneration (option payers). Comparison of the corporate governance characteristics of option payers to that of a matched control group (non-option payers) highlighted both the existence and independence of the remuneration committee as critical in ensuring NED remuneration practices comply with regulator recommendations. Research limitations/implications – These results provide regulators and stakeholder groups with additional evidence to continue to call for corporate governance reforms to ensure that corporate remuneration practices are in the best interest of shareholders. Originality/value – This study is the first to highlight the extent to which Australian-listed company NED remuneration practices fail to comply with regulator recommendations and adds to the limited research on remuneration committee effectiveness.
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Warburton, A. M., and S. E. Singleton. "THE EMERGING MARKET IN CARBON CREDITS IN AUSTRALIA." APPEA Journal 47, no. 1 (2007): 347. http://dx.doi.org/10.1071/aj06025.
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Climate change policy in Australia is in a state of upheaval.The Federal Government, after years of opposing mandatory carbon constraints, has changed tack and is now investigating emissions trading as a possible means of reducing greenhouse gas emissions.With a federal election looming, the Labor Opposition has committed to ratifying the Kyoto Protocol and reducing greenhouse gas emissions by 60% (against 1990 levels) by 2050. Not to be left out, the State governments say they will introduce an emissions trading regime themselves, if the federal government of the day does not move quickly enough.It now seems clear that there will be some form of carbon price signal in Australia within the next five to 10 years. What is unclear is the form that the carbon constraints might take.Amid this policy uncertainty, large energy producers and users are starting to invest in emissions reduction projects in Australia, as a form of risk management for potential future carbon liabilities. These projects are unusual in that the carbon rights that are being traded are not recognised under any existing Australian statutory scheme, nor are they part of the Kyoto mechanisms. Consequently, they are not recognised by law and do not have any real value today. Their value is largely potential future value under some form of emissions trading scheme or carbon tax regime (which places a price on carbon emissions).These projects raise some novel issues for project developers and purchasers. What is the carbon right that is being sold? How do you frame it to maximise flexibility for use under a future carbon constraint regime?How do you ensure ongoing validity of the carbon right for an indefinite period into the future? For carbon sink projects, the purchaser will want some comfort regarding permanence of abatement of CO2 emissions.Project developers are often small start-up companies with few assets and limited cash flow. They may not be in a position to offer securities for performance. What mechanisms can a purchaser use to assist with start-up funding and also secure the rights they are purchasing?What pricing structures are available, particularly for future sales, against the background of a possible future carbon market?What obligations should the developer/seller have in relation to verification, monitoring and reporting of avoided emissions?How might projects be structured to involve multiple buyers to support the project and facilitate development of a market?
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North, Gill, and Therese Wilson. "Supervision of the Responsible Lending Regimes: Theory, Evidence, Analysis and Reforms." Federal Law Review 46, no. 2 (June 2018): 193–229. http://dx.doi.org/10.1177/0067205x1804600202.
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National responsible lending regimes have operated in Australia since 2009, with the stated aims to encourage prudent lending, curtail undesirable market practices, and impose sanctions for irresponsible lending and leasing. This article outlines a study of the supervision of the responsible lending rules by the Australian Securities and Investments Commission (ASIC) from 2014 to mid-2017. The study finds that the Commission proactively engaged with lenders, encouraged tighter lending standards, and sought or imposed severe penalties for egregious conduct. Further, the Commission strategically targeted credit products commonly acknowledged as the riskiest or most material from a borrower's perspective, such as small amount credit contracts, interest only home loans, and car loans. Despite these positive findings, however, many households are heavily indebted and large segments of the community and the nation are highly susceptible to future harm. In this environment, we question the timeliness and sufficiency of the Commission's interventions and responses, and predict further litigation that tests the boundaries of the responsible lending rules. Moving forward, we call for more systematic supervision of responsible lending risks, practices and exposures and propose modest reforms that require lenders to better inform and engage with consumers about the risks of elevated levels of debt.
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Degeling, Simone, and Jessica Hudson. "Credit Advisers, Consumer Credit and Equitable Fiduciary Obligations." Federal Law Review 47, no. 1 (February 8, 2019): 64–90. http://dx.doi.org/10.1177/0067205x18816235.
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Consumers use financial intermediaries such as brokers and other credit advisers to navigate complex financial markets and to provide guidance on credit products. In 2017 ASIC reported that ‘[b]rokers … are responsible for arranging … half of all home loans in Australia’ (Australian Securities & Investments Commission, Report 516: Review of Mortgage Broker Remuneration (2017) 8 [18]). The National Consumer Credit Protection Act 2009 (Cth) (‘Credit Regime’) regulates the conduct of such advisers including requiring disclosure of fees and some commissions. The Credit Regime also permits conflicts between the interest of the adviser and the client, provided that the adviser has in place ‘adequate arrangements to ensure … [that the client is] … not disadvantaged by any conflict of interest’ and that the conflict does not breach the adviser’s obligation to act ‘efficiently, honestly and fairly’. This article demonstrates that equitable fiduciary obligations also operate to regulate the conduct of the adviser in his or her dealings with the client. Such conflict and other conduct may breach any equitable fiduciary obligation thus exposing the adviser to equitable remedies. Equitable fiduciary obligations may thus be an as yet under-exploited avenue of protection for consumers and a concomitant zone of compliance risk for those subject to the Credit Regime.
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Duffy, Michael J. "Developments in United States Securities Class Actions: The Status of ‘Fraud on the Market’ Causation and Implications for Australia." Common Law World Review 40, no. 4 (September 2011): 345–77. http://dx.doi.org/10.1350/clwr.2011.40.4.0227.
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Haman, Janto, Keryn Chalmers, and Victor Fang. "The Effects of IPO Mandatory Lockups and Corporate Governance on Underpricing: Evidence From the Australian Securities Exchange." Journal of Accounting, Auditing & Finance 35, no. 4 (May 7, 2019): 854–69. http://dx.doi.org/10.1177/0148558x19846754.
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In Australia, initial public offering (IPO) firms not satisfying profit or asset tests are permitted to list on the securities exchange with mandatory lockups (MLs) imposed on insiders’ shares. We investigate whether such lockups, and the lockup periods, are associated with underpricing. We find that the incremental effect of the association between longer ML periods and higher underpricing is stronger for firms with higher insiders’ equity ownership subject to MLs relative to firms with lower insiders’ equity ownership subject to MLs. This suggests that the extent and length of insiders’ equity ownership subject to MLs convey information regarding IPO firms’ risk. We also find that good corporate governance reduces IPO underpricing for firms with MLs. It moderates the IPO underpricing for firms with higher and longer insiders’ equity ownership subject to MLs. Our findings are informative for regulators in understanding how MLs can assist in allowing smaller and younger firms with inadequate financial strength and performance to publicly raise equity capital, while morally protecting investors and preserving market integrity.
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Morrissey, Dan. "The EU’S Struggles with Collective Action for Securities Fraud." Texas A&M Law Review 7, no. 1 (October 2019): 125–52. http://dx.doi.org/10.37419/lr.v7.i1.3.
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Notwithstanding the apparent exit of the United Kingdom, the European Union (“EU”) has grown in membership and power since its modest beginnings after World War II, now rivaling the U.S. in economic strength. With the goal of promoting the security and prosperity of all the citizens of the countries that belong to it, the EU is pressing ahead to adopt laws that will promote their political and financial integration. Along those lines, it has also recently acknowledged a deficiency in the legal systems of its member states when it comes to allowing collective actions for victims of various types of economic harm. To address that, the EU is now developing guidelines for such procedures that can redress those injuries. In the area of securities fraud, establishing such measures has taken on more importance after both a spate of financial frauds by European companies and a significant decision from the United States Supreme Court, Morrison v. National Australia Bank. That ruling cut back on the jurisdiction of American courts to adjudicate these claims against foreign defendants—even when a significant amount of the wrongdoing has occurred in the U.S. This EU initiative to develop a collective jurisprudence to redress securities fraud also supports another goal that would foster European economic well-being. It would promote a shift in the financing of businesses there from debt to equity. That would particularly help small- and medium-size firms by giving confidence to investors in those enterprises that if they were cheated they would have an effective means to remedy that wrong. As it is now, such stock frauds can typically involve a large number of investors, many of whom have relatively small holdings. Individual actions in those situations are not only too expensive to maintain but are often inadequate to compensate all their victims and deter future misconduct. The availability of effective collective remedies would help Europeans overcome their reluctance to make equity investments and therefore provide more flexible capital structures to businesses. The European Commission10 (“Commission”) is therefore trying to fashion legal tools to address that problem. This involves enhancement of the EU’s mechanisms for stockholder litigation—what one commentator defines as “an umbrella term for various forms of suit and a range of claims brought by shareholders against the company in which they hold shares or against its directors and officers.” The EU’s proposals in that regard seek to encourage what it calls “collective actions,”—its analog to U.S. class actions—where many stockholders with small claims can join together and adjudicate them in one suit. Without such a corrective mechanism, the costs of litigation would be too great for those individuals, and they would not be able to counter the substantial resources that the defendants typically have. The EU’s proposals, however, lack features that have made American class actions so effective. The Commission is reluctant to embrace that model because of what it calls our “abusive practices.” Chief among them are contingent fees that compensate lawyers who represent shareholders harmed by these frauds. In addition, the Europeans appear determined to hold on to several rules that discourage lawyers from taking these cases. One is “loser pay,” which makes those who are unsuccessful in litigation liable for the legal fees of their counterparties who prevail. The potential of that heavy extra charge is a disincentive for lawyers who would take these cases. Another is that only plaintiffs who directly consent to be parties can be part of these actions (opt-in), as opposed to the more generous opt-out practice which includes all victims of the common fraud as plaintiffs unless they specifically choose not to participate. This Article will therefore offer comment on those deficiencies in the developing European model and encourage our friends across the Atlantic to take a more realistic approach to their reforms. The American experience with securities class actions certainly has its detractors and may have had some failings which have now been corrected. All and all, however, the U.S. approach has served our economy well by protecting investors, checking corporate wrongdoing, and affording compensation to defrauded investors. First, this Article will give a brief overview of the historic problems that European companies have had with an over-reliance on debt financing. It will then discuss how reforms like better redress for fraud can change that by giving equity investors a stronger belief that they will get a fair shake. The EU’s proposals are a step in the right direction to address that concern, and the Article will go on to describe the current state of their development. After that, it will use an American perspective to point out their shortcomings with the goal of highlighting the benefits of the U.S. model to European policymakers.
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Naughton, James P., Tjomme O. Rusticus, Clare Wang, and Ira Yeung. "Private Litigation Costs and Voluntary Disclosure: Evidence from the Morrison Ruling." Accounting Review 94, no. 3 (July 1, 2018): 303–27. http://dx.doi.org/10.2308/accr-52203.
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ABSTRACT We examine the causal effect of expected private litigation costs on voluntary disclosure using a natural experiment, the Supreme Court ruling in Morrison v. National Australia Bank. Even though this ruling had no effect on what constituted fraudulent conduct for the purpose of securities litigation, it significantly reduced the expected private litigation costs for foreign cross-listed firms by reducing the pool of potential claimants. It did so by eliminating the right of shareholders who purchased shares on non-U.S. exchanges from seeking compensation in U.S. courts. In the post-Morrison period, we find consistent evidence showing a decrease in voluntary disclosure using analyses that exploit the varying impact of the ruling based on both firm- and country-level attributes. Unlike a number of prior studies, we find that the positive relation between litigation and disclosure does not depend on the direction of the news. JEL Classifications: G15; G18; M41. Data Availability: Data are available from the public sources cited in the text.
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Sigler, Thomas J., and Kirsten Martinus. "Extending beyond ‘world cities’ in World City Network (WCN) research: Urban positionality and economic linkages through the Australia-based corporate network." Environment and Planning A: Economy and Space 49, no. 12 (July 17, 2016): 2916–37. http://dx.doi.org/10.1177/0308518x16659478.
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Defining the role of cities within economic networks has been a key theoretical challenge, particularly as nuanced understandings of positionality are increasingly championed over hierarchical notions of influence or power in the World City Network (WCN). This paper applies social network analysis (SNA) to identify the critical role that a wide range of cities plays in the Australian economic system. Drawing upon the set of Australian Securities Exchange (ASX) listed firms, four distinct sub-networks are compared against the overall urban network. Each of the materials, energy, industrials, and financials sector sub-networks are found to have unique configurations of inter-urban relations, which are articulated through institutional and industry-specific factors, grounded in diverse histories and path-dependent trajectories. This analysis applies five different centrality measures to understand how positionality within the overall network and respective sub-networks might better inform policymakers formulating ‘globalizing’ urban policy. This addresses the long-standing theoretical debate regarding territorially articulated hierarchies of urban/corporate power, extricating WCN research from the core-periphery assumptions tied to its world-systems theory lineage. Understanding how, rather than if, cities are global provides contextual knowledge about how cities are situated within broader circuits of production, and the exogenous relations that shape urban economies around the world, providing a framework for research in other global contexts.