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 Modelling and Assessment of Credit Default Risk. This project will deliver an enhanced set of methodologies for the quantification and management of credit default risk. These outcomes will benefit researchers both in academia and in Australian financial institutions as research into credit risk has been active in recent years, due to the impending adoption by financial institutions of the Basel II accord on risk assessment. The outcomes will provide a strong academic methodology applied to ....The Modelling and Assessment of Credit Default Risk. This project will deliver an enhanced set of methodologies for the quantification and management of credit default risk. These outcomes will benefit researchers both in academia and in Australian financial institutions as research into credit risk has been active in recent years, due to the impending adoption by financial institutions of the Basel II accord on risk assessment. The outcomes will provide a strong academic methodology applied to credit default risk by Australian financial institutions and the Australian financial regulator. This research has the potential to enhance the competitivemess of Australia's financial sector.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
The modelling and estimation of volatility in energy markets. The growing trend of deregulation of energy markets poses important problems for users and suppliers of energy as well as for government policy makers. In particular it has become necessary to manage the risk of unexpected load and price fluctuations. One of the main challenges concerns the extreme volatility of prices and the evaluation of derivative prices and hedging ratios to take account of volatility. The outcomes of project wil ....The modelling and estimation of volatility in energy markets. The growing trend of deregulation of energy markets poses important problems for users and suppliers of energy as well as for government policy makers. In particular it has become necessary to manage the risk of unexpected load and price fluctuations. One of the main challenges concerns the extreme volatility of prices and the evaluation of derivative prices and hedging ratios to take account of volatility. The outcomes of project will be of benefit to all participants in Australian energy markets who need to use derivative positions to hedge energy risk. This issue has become important due to the increasing national focus on efficient use of energy resources.Read moreRead less
Discovery Early Career Researcher Award - Grant ID: DE150101889
Funder
Australian Research Council
Funding Amount
$350,000.00
Summary
Insider trading in financial markets. Insider trading destroys confidence in financial markets and undermines their fairness and efficiency. Substantial amounts of taxpayer money are spent each year in combatting insider trading, and yet cases of insider trading remain abundant. This project aims to advance our understanding of insider trading, its prevalence, social costs, characteristics and determinants, and how it responds to different penalties. This project aims to allow for more efficient ....Insider trading in financial markets. Insider trading destroys confidence in financial markets and undermines their fairness and efficiency. Substantial amounts of taxpayer money are spent each year in combatting insider trading, and yet cases of insider trading remain abundant. This project aims to advance our understanding of insider trading, its prevalence, social costs, characteristics and determinants, and how it responds to different penalties. This project aims to allow for more efficient use of regulatory resources through better rules, more accurate detection methods, and increased deterrence. It aims to benefit society through fairer and more efficient markets.Read moreRead less
Chief executive officer pay, incentives, talent and risk-taking: Excessive pay, regulation and the global financial crisis. The Prime Minister has requested the regulators, APRA and Treasury, to come up with rules that would prevent a repeat of the trillion dollar bailouts and guarantees to the financial sector and banks at risk of failure. Excessive pay and risk-taking by bank executives shoulder made the blame for the global crisis that has already cost Australian investors and taxpayers a siz ....Chief executive officer pay, incentives, talent and risk-taking: Excessive pay, regulation and the global financial crisis. The Prime Minister has requested the regulators, APRA and Treasury, to come up with rules that would prevent a repeat of the trillion dollar bailouts and guarantees to the financial sector and banks at risk of failure. Excessive pay and risk-taking by bank executives shoulder made the blame for the global crisis that has already cost Australian investors and taxpayers a sizeable portion of the nation's wealth. The project will greatly assist the regulators in this task. It will also identify compensation practices that reward good long-term performance without excessive pay. This could dramatically raise the performance of Australian companies and ameliorate the problem of dissatisfied investors and taxpayers.Read moreRead less
Fragmentation, globalization and the architecture of stock markets: How should the ASX be redesigned to ensure its long-term survival? The ASX is only at 10% of its potential relative to world best practice in architectural design. Reforms that we investigate, such as a massive reduction in the minimum tick and greater transparency to reduce asymmetric information, could lift traded value by several fold and by billions of dollars to efficiency levels achieved by South Korea and reduce trading c ....Fragmentation, globalization and the architecture of stock markets: How should the ASX be redesigned to ensure its long-term survival? The ASX is only at 10% of its potential relative to world best practice in architectural design. Reforms that we investigate, such as a massive reduction in the minimum tick and greater transparency to reduce asymmetric information, could lift traded value by several fold and by billions of dollars to efficiency levels achieved by South Korea and reduce trading costs by hundreds of millions pa. For each dollar of actual trading costs saved there is a further saving of 12 dollars in trades currently forgone. The ASX can be preserved from the threat of annihilation by a new global exchange and set up common trading platforms like Euronext in our region. The result will be more successful stocks to replace NewsCorp.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
Back door listings: from hot rocks to hot stocks. The purpose of this research is to explain the incidence, characteristics and performance of firms who engaged in back door listings in the late 1990s. A back door listings is a means whereby a private company becomes listed by a merger with a public corporation.
We are focussing on a research topic that has not been examined at all in academic research. This is despite the significance of the going public process and mergers. We will provide e ....Back door listings: from hot rocks to hot stocks. The purpose of this research is to explain the incidence, characteristics and performance of firms who engaged in back door listings in the late 1990s. A back door listings is a means whereby a private company becomes listed by a merger with a public corporation.
We are focussing on a research topic that has not been examined at all in academic research. This is despite the significance of the going public process and mergers. We will provide evidence on the performance of back door listings, and our results will be the basis of suggestions to market regulators and future researchers.Read moreRead less