Understanding market mechanisms to achieve greater efficiency in institutional equities and futures markets. This project investigates the impact of high frequency trading on financial market quality. Financial markets are essential for capital raising and form a critical part of the Australian economy. Ordinary residents have billions invested in it through superannuation. Deterioration in market quality leads to poor consumer confidence, increases firms’ cost of capital and transaction costs, ....Understanding market mechanisms to achieve greater efficiency in institutional equities and futures markets. This project investigates the impact of high frequency trading on financial market quality. Financial markets are essential for capital raising and form a critical part of the Australian economy. Ordinary residents have billions invested in it through superannuation. Deterioration in market quality leads to poor consumer confidence, increases firms’ cost of capital and transaction costs, and ultimately reduces retirement quality. The proliferation of high frequency trading in financial markets requires a thorough understanding of their impact on market quality. This project aims to lead to more efficient regulation, improving financial markets and making Australia attractive to investors and enhancing the quality of retirement for residents.Read moreRead less
What Is the Optimal Level of Transparency and Should Off-Market Block Trading exist in Futures Markets? The aims of this project are twofold; to assess (i) what level of transparency is optimal and (ii) whether off-market block trading should be allowed in futures markets. Transparency refers to how much of the trading process is made visible to participants. The issue has been researched only very recently and findings have been limited. Off-market block trading procedures allow large trades ....What Is the Optimal Level of Transparency and Should Off-Market Block Trading exist in Futures Markets? The aims of this project are twofold; to assess (i) what level of transparency is optimal and (ii) whether off-market block trading should be allowed in futures markets. Transparency refers to how much of the trading process is made visible to participants. The issue has been researched only very recently and findings have been limited. Off-market block trading procedures allow large trades to be executed away from the market. This project will undertake the first study of large trades on futures markets and will also compare the impact of large trades on market quality when executed on- and off-market.Read moreRead less
The Role of Corporate Governance Mechanisms in Maximising the Performance of Listed Australian Corporations. The recent spake of corporate collapses and scandals highlights the need for an ongoing commitment to the development, implementation and maintenance of strong systems of governance within Australian corporations. This commitment necessitates an understanding of which suite of governance mechanisms are most effective in positively impacting upon corporate performance rather than just the ....The Role of Corporate Governance Mechanisms in Maximising the Performance of Listed Australian Corporations. The recent spake of corporate collapses and scandals highlights the need for an ongoing commitment to the development, implementation and maintenance of strong systems of governance within Australian corporations. This commitment necessitates an understanding of which suite of governance mechanisms are most effective in positively impacting upon corporate performance rather than just the performance impact of a particular mechanism in isolation. To date, research facilitating such an understanding is all but non-existent. However, our study will yield this much-needed evidence and, therefore, provide the foundations for ongoing corporate governance reform on the part of regulators and practitioners alike.Read moreRead less
Equity Market Integrity and Liquidity. This project seeks to increase our understanding of market integrity. Market integrity directly impacts investor confidence which influences liquidity and the cost of capital. It is imperative that exchanges implement policies to enhance integrity to survive in a competitive market. The Australian Stock Exchange Limited (ASX) has provided access to unique data of alleged market manipulation to undertake this research. Previous researchers have been cons ....Equity Market Integrity and Liquidity. This project seeks to increase our understanding of market integrity. Market integrity directly impacts investor confidence which influences liquidity and the cost of capital. It is imperative that exchanges implement policies to enhance integrity to survive in a competitive market. The Australian Stock Exchange Limited (ASX) has provided access to unique data of alleged market manipulation to undertake this research. Previous researchers have been constrained by their inability to access such data. We now have an opportunity to complete unique research to develop a measure of market integrity and assess its impact on liquidity and the cost of capital.Read moreRead less
Risk and Prudential Regulation and Supervision of Australian Financial Institutions. The project seeks to enhance the effectiveness of prudential regulation and supervision of financial institutions (FIs) by examining the risk of FIs, as reflected in default risk premiums on FI international debt issues and variability of revenue/profitability measures, and the effect of broadening FI activities and the shift towards fee/commission income on FI risk. This forms the basis for the development and ....Risk and Prudential Regulation and Supervision of Australian Financial Institutions. The project seeks to enhance the effectiveness of prudential regulation and supervision of financial institutions (FIs) by examining the risk of FIs, as reflected in default risk premiums on FI international debt issues and variability of revenue/profitability measures, and the effect of broadening FI activities and the shift towards fee/commission income on FI risk. This forms the basis for the development and testing of statistical early warning systems of impending financial problems in Australian FIs. The models are compared with examiner rating systems currently used in prudential supervision.Read moreRead less
Religion, Finance and Ethics: Islamic and conventional perspectives on shared principles, practices, and financial institutions and instruments. By linking together specialists in finance, banking and religious history, with the Muslim Community Cooperative (Australia), this project explores communication and mutual benefit between international Islamic finance and conventional Western finance. It will propose new financial structures and instruments to expand the scope of Islamic finance, to m ....Religion, Finance and Ethics: Islamic and conventional perspectives on shared principles, practices, and financial institutions and instruments. By linking together specialists in finance, banking and religious history, with the Muslim Community Cooperative (Australia), this project explores communication and mutual benefit between international Islamic finance and conventional Western finance. It will propose new financial structures and instruments to expand the scope of Islamic finance, to maximise lending and investment opportunities in Australia, and to promote interaction between the Islamic and conventional financial sectors. The project will enable Australian researchers to work with international authorities in Islamic finance, promoting dialogue between Islamic and other groups, and increase investment and development within the Australian financial market.Read moreRead less
The contribution of the private equity and venture capital industry to the Australian economy and society. This study enables the priority goal of promoting an innovation culture and economy through research, by assessing the contribution of private equity investment in dynamic firms and evaluating industry practices. It guides the industry body (AVCAL) and the Government in formulating private equity and venture capital policy and initiatives to stimulate innovation and success in the Australia ....The contribution of the private equity and venture capital industry to the Australian economy and society. This study enables the priority goal of promoting an innovation culture and economy through research, by assessing the contribution of private equity investment in dynamic firms and evaluating industry practices. It guides the industry body (AVCAL) and the Government in formulating private equity and venture capital policy and initiatives to stimulate innovation and success in the Australian economy. The results allow the assessment of the success of the government programs and assists the private equity industry in quantifying its effectiveness in stimulating economic growth. Further, the study assists entrepreneurial firms developing innovative concepts, in understanding the benefits of seeking venture capital support in Australia.Read moreRead less
Impacts of International Financial Reporting Standards adoption on cost of equity capital, financial statement value-relevance, and firms' financing and investment strategies. The project's insights will assist policy makers to assess, progress and promote approaches to global economic and governance policy reforms. AIFRS adoption disturbs the financial markets equilibria previously struck under Australian accounting standards. Understanding this impact helps underpin micro- and macro- economi ....Impacts of International Financial Reporting Standards adoption on cost of equity capital, financial statement value-relevance, and firms' financing and investment strategies. The project's insights will assist policy makers to assess, progress and promote approaches to global economic and governance policy reforms. AIFRS adoption disturbs the financial markets equilibria previously struck under Australian accounting standards. Understanding this impact helps underpin micro- and macro- economic strategies and policy developments relying upon the role of financial reporting. It also assists capital markets to adapt to the new reporting environment, thus increasing capital allocation effectiveness and efficiency.
Australia's position as an early IFRS adopting nation enables the project to facilitate Australia's international leadership in global economic policy development. Read moreRead less
Novel Mathematical Technologies for Financial Valuation and Risk. The finance industry is a key industry sector in Australia, with a highly qualified and well-paid work force. The profitability and stability of financial institutions rests in part on their ability to accurately and rapidly value innovative financial products and to quantify risk, yet many contemporary financial products are difficult to value quickly and accurately. This project will bring innovative mathematical technologies ....Novel Mathematical Technologies for Financial Valuation and Risk. The finance industry is a key industry sector in Australia, with a highly qualified and well-paid work force. The profitability and stability of financial institutions rests in part on their ability to accurately and rapidly value innovative financial products and to quantify risk, yet many contemporary financial products are difficult to value quickly and accurately. This project will bring innovative mathematical technologies to bear on complex financial problems. It has the potential to improve both the profitability and stability of Australian financial institutions, and to enhance their role regionally and internationally.Read moreRead less