Governance and the investment performance of not-for-profit endowments. Governance and the investment performance of not-for-profit endowments. This project aims to examine the relation between performance and governance for Australian not for profit (NFP) endowments. The not-for-profit sector now accounts for over 4 per cent of the gross domestic product (GDP) (almost $43 billion) and employs volunteers who contribute an additional $14.6 billion in unpaid work. Little research has been done on ....Governance and the investment performance of not-for-profit endowments. Governance and the investment performance of not-for-profit endowments. This project aims to examine the relation between performance and governance for Australian not for profit (NFP) endowments. The not-for-profit sector now accounts for over 4 per cent of the gross domestic product (GDP) (almost $43 billion) and employs volunteers who contribute an additional $14.6 billion in unpaid work. Little research has been done on the investment performance of the endowments held by NFPs, even though this is an important contributor to their revenues. Expected outcomes include a publicised set of principles and periodically updated index of endowment governance quality, and attendant improvement in NFP investment management.Read moreRead less
Quantitative Analysis of Systemic Risk in Insurance. This project aims to achieve a contemporary and comprehensive quantitative analysis of systemic risk in insurance. The significance lies in narrowing the gap between the studies of systemic risk in banking and insurance. Expected outcomes include the construction of insurance/reinsurance networks to formalise systemic risk, the analysis of the role of network integration, and the development of pricing frameworks to entail a systemic risk prem ....Quantitative Analysis of Systemic Risk in Insurance. This project aims to achieve a contemporary and comprehensive quantitative analysis of systemic risk in insurance. The significance lies in narrowing the gap between the studies of systemic risk in banking and insurance. Expected outcomes include the construction of insurance/reinsurance networks to formalise systemic risk, the analysis of the role of network integration, and the development of pricing frameworks to entail a systemic risk premium. The project will benefit insurers and regulators by providing a forward-looking approach to monitoring and assessing insurance risk during a systemic crisis. These important original contributions to insurance risk management will help establish Australia’s global leadership in systemic risk.Read moreRead less
Forecasting and Financing Healthy Ageing and Aged Care in Australia. This project aims to quantify future risks of chronic illness and functional disability in retirement, proposing financing strategies aimed at enhancing healthy ageing, lifestyle quality and aged care provisions. The project devotes to devising a framework integrating government and private sector participation in funding health costs which increase significantly in older ages. The expected outcome includes sustainable retireme ....Forecasting and Financing Healthy Ageing and Aged Care in Australia. This project aims to quantify future risks of chronic illness and functional disability in retirement, proposing financing strategies aimed at enhancing healthy ageing, lifestyle quality and aged care provisions. The project devotes to devising a framework integrating government and private sector participation in funding health costs which increase significantly in older ages. The expected outcome includes sustainable retirement income scenarios for easing fiscal pressure from social initiatives such as age pension and aged care financing at the same time improving living standards for seniors. The project expects to place Australia at the forefront of research on sustainable solutions to financial challenges facing retirees.Read moreRead less
Judgment and decision making using ESG performance information. Organisations face increasing pressure to deliver value aligned with both financial and environmental, social and governance (ESG) goals. Yet we know very little about the way in which managers within these organisations use financial and nonfinancial ESG performance information to make decisions that support their ESG goals. This project aims to examine how managers use ESG performance information to make internal business decision ....Judgment and decision making using ESG performance information. Organisations face increasing pressure to deliver value aligned with both financial and environmental, social and governance (ESG) goals. Yet we know very little about the way in which managers within these organisations use financial and nonfinancial ESG performance information to make decisions that support their ESG goals. This project aims to examine how managers use ESG performance information to make internal business decisions, and create new knowledge on how an organisation’s performance measurement system influences their decision making processes. Our project outcomes will benefit preparers and users of ESG information within organisations, who by making better ESG-related decisions can create long-term value for all stakeholders.Read moreRead less
Diversification failures and improved measures of uncertainty. The project aims to develop new statistical tools, applicable when the conventional paradigm that diversification reduces risk fails and when textbook approaches to risk quantification severely under-report risk. The new tools enhance our capacity to build and manage natural, social and human-made systems in uncertain environments. Our effective response to many threats including financial crises and natural events, depends on this c ....Diversification failures and improved measures of uncertainty. The project aims to develop new statistical tools, applicable when the conventional paradigm that diversification reduces risk fails and when textbook approaches to risk quantification severely under-report risk. The new tools enhance our capacity to build and manage natural, social and human-made systems in uncertain environments. Our effective response to many threats including financial crises and natural events, depends on this capacity. Thus, the expected benefits in the form of more reliable and robust risk analytics will accrue when they are most needed.Read moreRead less
Shock model-based framework for modelling correlated large losses. This project aims to develop aggregate risk models by utilizing shock models in reliability theory. It intends to provide a new alternative approach which is more realistic and also mathematically tractable in order to estimate various types of quantities in (re)insurance and operational risk management. The expected outcome includes enhanced capacity by advanced analytical tools to assess correlated and large risks, thus assisti ....Shock model-based framework for modelling correlated large losses. This project aims to develop aggregate risk models by utilizing shock models in reliability theory. It intends to provide a new alternative approach which is more realistic and also mathematically tractable in order to estimate various types of quantities in (re)insurance and operational risk management. The expected outcome includes enhanced capacity by advanced analytical tools to assess correlated and large risks, thus assisting in the management of key risks and improving the effectiveness of risk management. This should benefit the stability of the financial and regulatory systems where large and dependent risks are concerned.Read moreRead less
Venture capitalist networks and the financing of innovation. This project aims to understand why some venture capitalists (VCs) are more successful than others at financing start-ups. It studies the role of network connections between individual VCs, which are an important channel through which VCs accumulate specialised skills, exchange information and establish reputation. This project will analyse how these networks evolve, whether they explain an individual VC’s performance, and how network- ....Venture capitalist networks and the financing of innovation. This project aims to understand why some venture capitalists (VCs) are more successful than others at financing start-ups. It studies the role of network connections between individual VCs, which are an important channel through which VCs accumulate specialised skills, exchange information and establish reputation. This project will analyse how these networks evolve, whether they explain an individual VC’s performance, and how network-related human capital shapes the boundaries of a VC partnership. The expected outcomes will contribute insights into low capital allocation to venture capital funds the constrained formation of new venture capital partnerships by Australian institutional investors.Read moreRead less
A New framework to improve human-robot interaction in financial markets. This project aims to investigate the interaction of humans with robots (automated, algorithmic traders) in financial markets. It will build a novel environment based on controlled experiments within the context of financial markets. It is expected to discover how market participants choose to engage robots, and when and why robots are disengaged. The project will also investigate how the use of robots affects price behavio ....A New framework to improve human-robot interaction in financial markets. This project aims to investigate the interaction of humans with robots (automated, algorithmic traders) in financial markets. It will build a novel environment based on controlled experiments within the context of financial markets. It is expected to discover how market participants choose to engage robots, and when and why robots are disengaged. The project will also investigate how the use of robots affects price behaviour, and efficiency of allocation. This will provide significant benefits, such as enhancing Australia’s capacity for the scientific study of financial markets and for developing financial technology using an experimental method.Read moreRead less
Measuring uncertainty in global housing markets and its risk to Australia. This project aims to develop and construct a measure of systemic risk for the national real-estate markets in Australia, and its main trading partners, namely China, Japan, New Zealand, United Kingdom and United States of America. Recently developed methodology will be used to investigate how real estate risks migrate across these countries over time, and during periods of financial turbulence. This methodology is intende ....Measuring uncertainty in global housing markets and its risk to Australia. This project aims to develop and construct a measure of systemic risk for the national real-estate markets in Australia, and its main trading partners, namely China, Japan, New Zealand, United Kingdom and United States of America. Recently developed methodology will be used to investigate how real estate risks migrate across these countries over time, and during periods of financial turbulence. This methodology is intended to be employed as part of a market stability surveillance program and for assessing the impact of real-estate risk on the overall economy. Early detection of the onset of future housing bubble collapses would be of significant benefit to policy makers, Australia’s trading partners, the real estate industry and ultimately home buyers.Read moreRead less
Political connections and the cleantech transition in China and Australia. Estimates show that the transition to clean technology will likely create $20 trillion in wealth worldwide. This project aims to analyse how corporate investment and government strategies are deployed in China and Australia to maximise wealth capture. Taking into consideration the critical role of government policy in the cleantech transition, the project attempts to determine how carbon-intensive and cleantech firms use ....Political connections and the cleantech transition in China and Australia. Estimates show that the transition to clean technology will likely create $20 trillion in wealth worldwide. This project aims to analyse how corporate investment and government strategies are deployed in China and Australia to maximise wealth capture. Taking into consideration the critical role of government policy in the cleantech transition, the project attempts to determine how carbon-intensive and cleantech firms use political connections as a mechanism for mitigating risks and taking advantage of opportunities. This project focuses on the relation between politically connected boards and the cleantech transition, and seeks to empirically show the economic importance and value effects of political connections in two countries.Read moreRead less