Regional financial stability: ownership linkages of financial institutions and propagation of systemic risk. Financial stability in our region has a significant effect on the prosperity, competitiveness and viability of the Australian financial industry. This project will analyse how the ownership of financial institutions in the Asian and European regions can contribute to regional and global financial stability with a focus on systemic risk and governance.
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
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
Global Financial Crisis and financial stability: an investigation of the systemic risk for financial institutions. The aim of this project is to provide information about the systemic risk of major financial institutions around the world on a real time basis. The findings of this study will allow both financial markets and regulators to monitor in real time, on a daily and weekly basis, the financial risk of large financial institutions from around the world.
The failings of financial markets. Financial markets are failing to serve society. The recent Royal Commission into Misconduct in Financial Services has highlighted many examples, as have major litigation cases against Australia’s banks for market manipulation at enormous scale. Markets are becoming increasingly fragile with the automation of trading and are failing in funding companies, with fewer companies listing on stock markets. This project will investigate how and why financial markets ar ....The failings of financial markets. Financial markets are failing to serve society. The recent Royal Commission into Misconduct in Financial Services has highlighted many examples, as have major litigation cases against Australia’s banks for market manipulation at enormous scale. Markets are becoming increasingly fragile with the automation of trading and are failing in funding companies, with fewer companies listing on stock markets. This project will investigate how and why financial markets are failing, what are the real effects of these failings, and what should be done about them. The project will develop policy solutions to mitigate the failings, thereby enhancing Australia’s economic prosperity, benefitting retirement savings, and improving regulatory efficiency.
Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE140100253
Funder
Australian Research Council
Funding Amount
$373,700.00
Summary
Bank governance and financial crisis: implications for bank risk-taking, earnings management, and information efficiency. The global financial crisis signified that the connections between the governance of banks, their performance, and the long-term stability of the financial system are not well understood. This project investigates how executives' compensation, audit efforts and ownership structure in banks impact their risk-taking, accounting choices and information flows in a global setting ....Bank governance and financial crisis: implications for bank risk-taking, earnings management, and information efficiency. The global financial crisis signified that the connections between the governance of banks, their performance, and the long-term stability of the financial system are not well understood. This project investigates how executives' compensation, audit efforts and ownership structure in banks impact their risk-taking, accounting choices and information flows in a global setting for the periods before and around the crisis. The project findings will advance our knowledge of how to improve the existing monitoring systems of banks to safeguard the economy and to provide a more transparent bank system. The project will also facilitate an evaluation of the effectiveness of various reforms that were initiated following the crisis.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
The Importance of Being Politically Connected. The literature on the importance of political connections to firms and their value implications is scant. This project aims to develop a framework that depicts the interplay of political connections, institutional factors, corporate governance, media coverage and firm value. In particular, it investigates how political connections enhance the value of firms in China and how this changes as the market transitions.
The role of asymmetric dependence on Australian firms' cost of capital. This project aims to reframe the cost-of-capital estimation to incorporate asymmetric dependence (AD), and explore the economic loss caused by omitting AD. Asymmetric Dependence describes the phenomenon whereby the dependence between a stock and the market differs during downturns compared with market upturns. This is significant because portfolio diversification fails at the very moment that investors need it most. This ....The role of asymmetric dependence on Australian firms' cost of capital. This project aims to reframe the cost-of-capital estimation to incorporate asymmetric dependence (AD), and explore the economic loss caused by omitting AD. Asymmetric Dependence describes the phenomenon whereby the dependence between a stock and the market differs during downturns compared with market upturns. This is significant because portfolio diversification fails at the very moment that investors need it most. This project will explore how firms can strategically innovate and evolve in order to manage their exposure to AD and hence reduce their cost of capital. This will provide significant benefits, such as lowering the cost of capital of Australian firms and to increase their productivity.Read moreRead less
The real effects of bank capital regulation on international bank lending. This project aims to analyse the effect of risk-based capital regulation on international bank lending and real economic activity in borrowing countries. The Global Financial Crisis and financial turmoil highlighted serious failings in global banks’ regulatory framework. Since the international financial system is not resilient, redesigning capital regulation as part of wider reforms is urgently needed. In light of this, ....The real effects of bank capital regulation on international bank lending. This project aims to analyse the effect of risk-based capital regulation on international bank lending and real economic activity in borrowing countries. The Global Financial Crisis and financial turmoil highlighted serious failings in global banks’ regulatory framework. Since the international financial system is not resilient, redesigning capital regulation as part of wider reforms is urgently needed. In light of this, Australia’s latest Financial System Inquiry advocated higher bank capital requirements. This project expects to raise awareness among national and international policy makers and prudential regulators working towards further banking regulatory reforms.Read moreRead less