Increasing confidence in Australian carbon disclosures. This project aims to investigate whether carbon disclosures made by Australian resource firms are less than actual emissions (i.e., carbonwashing) using satellite imagery technology. New knowledge will be generated by triangulating carbonwashing information against firm data, such as valuation, other disclosures, and hiring practices, to understand if and how carbonwashing impacts firm values and organisational controls. Expected outcomes i ....Increasing confidence in Australian carbon disclosures. This project aims to investigate whether carbon disclosures made by Australian resource firms are less than actual emissions (i.e., carbonwashing) using satellite imagery technology. New knowledge will be generated by triangulating carbonwashing information against firm data, such as valuation, other disclosures, and hiring practices, to understand if and how carbonwashing impacts firm values and organisational controls. Expected outcomes include improved ways to detect carbonwashing and its relationship to management control weaknesses, benefiting all stakeholders (including investors and regulators) in supporting government-proposed reforms to the Australian Safeguard Mechanism in instilling confidence in Australian carbon disclosures.Read moreRead less
Option pricing via path integrals: a new perspective. The risk management of derivative securities is a very exciting challenge for financial market researchers. The knowledge base resulting from this proposal will benefit both large financial institutions and Australia's financial system by creating a more competitive and efficient economic environment, which will inevitably lead to more gross domestic product (GDP) gains.Furthermore a large amount of software and numerical analysis work to be ....Option pricing via path integrals: a new perspective. The risk management of derivative securities is a very exciting challenge for financial market researchers. The knowledge base resulting from this proposal will benefit both large financial institutions and Australia's financial system by creating a more competitive and efficient economic environment, which will inevitably lead to more gross domestic product (GDP) gains.Furthermore a large amount of software and numerical analysis work to be developed during the project can be turned into IP for Australia. This will contribute to catalysing development of internationally competitive financial risk management software industry.Read moreRead less
ARC Financial Integrity Research Network. The integrity of the financial system is constantly under stress because of the development of ever more complex financial instruments, structures and strategies, and the associated research technologies that continues to accelerate worldwide. FIRN's vision is to harness the considerable strengths of Australia's internationally renowned finance, accounting and economics researchers into a research agenda to address issues concerning the integrity of the ....ARC Financial Integrity Research Network. The integrity of the financial system is constantly under stress because of the development of ever more complex financial instruments, structures and strategies, and the associated research technologies that continues to accelerate worldwide. FIRN's vision is to harness the considerable strengths of Australia's internationally renowned finance, accounting and economics researchers into a research agenda to address issues concerning the integrity of the financial system. It will enable Australian research in this area to match the scale and impact of similar research in other major international financial centres, and play an essential role in placing Australia among the world's leaders in financial markets related research.Read moreRead less
The paradox of choice: Unravelling complex superannuation decisions. Australia has been a world-leader in retirement savings policy, but there remains a pervasive lack of understanding about how best to communicate complex financial information to decision-makers, along with a push by government for clearer disclosure and greater financial literacy. This project will inform regulators and the superannuation industry on how choices are made and how to present clearer, better-designed information ....The paradox of choice: Unravelling complex superannuation decisions. Australia has been a world-leader in retirement savings policy, but there remains a pervasive lack of understanding about how best to communicate complex financial information to decision-makers, along with a push by government for clearer disclosure and greater financial literacy. This project will inform regulators and the superannuation industry on how choices are made and how to present clearer, better-designed information to be understood by ordinary participants, thus encouraging active, well-informed participation rather than passive 'default' decisions. More efficient investment and benefit choices will improve the economic welfare of retirees, reduce the burden on the working-age population and improve fiscal sustainability.Read moreRead less
Risk Measures and Management in Finance and Actuarial Science Under Regime-Switching Models. New models for assessing and managing risk of financial products will place Australia at the forefront of risk management. The work will also sustain the competitive edge of Australia as one of the major financial centres in the Asia-Pacific region through enhancing both the theory and practice of financial risk management. The project outcome will also benefit to the country in other areas of risk, for ....Risk Measures and Management in Finance and Actuarial Science Under Regime-Switching Models. New models for assessing and managing risk of financial products will place Australia at the forefront of risk management. The work will also sustain the competitive edge of Australia as one of the major financial centres in the Asia-Pacific region through enhancing both the theory and practice of financial risk management. The project outcome will also benefit to the country in other areas of risk, for example, environment risk, climate change, and energy and security problems.Read moreRead less
Dynamic risk measures. Exposure to risk is a pervasive problem. The results will be of importance for financial institutions when they estimate their exposure to risk. Other applications will be to determine the level of risk from a terrorist attack or regional instability. Companies wish to allocate resources to minimize their exposure to adverse events.
Liquidity in financial markets. This project aims to develop a theory which models the effect of liquidity on option prices under different market conditions. Economic or financial crises are inevitable and affect economics. During or after a major financial crisis, market liquidity usually becomes risky and needs to be studied. Through both empirical and theoretical explorations, this project will quantify and measure liquidity risk and its effect on the options markets. It will develop a frame ....Liquidity in financial markets. This project aims to develop a theory which models the effect of liquidity on option prices under different market conditions. Economic or financial crises are inevitable and affect economics. During or after a major financial crisis, market liquidity usually becomes risky and needs to be studied. Through both empirical and theoretical explorations, this project will quantify and measure liquidity risk and its effect on the options markets. It will develop a framework to help market regulators manage illiquidity, enhance the efficiency of option trading in illiquid markets and help in the detection of market manipulation.Read moreRead less
Trade and investment in the face of declining international cooperation. This project aims to investigate the impact and policy implications of trade and investment policies in a world trade system facing increasing uncertainty. The project intends to gain an improved understanding of investment regulations like Investor State Dispute Settlement (ISDS) agreements and their impact on trade and foreign direct investment. Expected outcomes include new theories for the breakdown of international agr ....Trade and investment in the face of declining international cooperation. This project aims to investigate the impact and policy implications of trade and investment policies in a world trade system facing increasing uncertainty. The project intends to gain an improved understanding of investment regulations like Investor State Dispute Settlement (ISDS) agreements and their impact on trade and foreign direct investment. Expected outcomes include new theories for the breakdown of international agreements and their effects on third world countries as well as empirical methods that allow for a quantification of the welfare and employment effects of investment policies like ISDS. This project should provide benefits by informing government policy makers to improve Australia’s trade and investment policies.Read moreRead less
The adequacy and sustainability of self-managed superannuation funds: Governance, performance, asset allocation, fee structure and compliance. This project will provide research to aid decision makers in policy formation and setting on governance, regulatory and performance issues relating to Self-Managed Superannuation Funds (SMSFs), which now make up the largest proportion of superannuation assets, accounting for over 30% of the total $1.1 trillion of superannuation assets in Australia. Empir ....The adequacy and sustainability of self-managed superannuation funds: Governance, performance, asset allocation, fee structure and compliance. This project will provide research to aid decision makers in policy formation and setting on governance, regulatory and performance issues relating to Self-Managed Superannuation Funds (SMSFs), which now make up the largest proportion of superannuation assets, accounting for over 30% of the total $1.1 trillion of superannuation assets in Australia. Empirically driven advice to the Government and the general community on these issues is of substantial importance given the need for retirees to be self-financing and the current adverse conditions experienced in today's financial environment. Research stemming from this project will highlight the value proposition SMSFs may or may not be providing to the superannuation industry.Read moreRead less
Political economy of distortions to global agricultural markets. Farmers, agribusiness and governments in Australia and other food-exporting nations have put enormous efforts into seeking reductions in agricultural protectionism, particularly in the past two decades via the Cairns Group in GATT/WTO negotiations but also in bilateral and regional integration initiatives. Yet levels of protection have fallen little for agriculture relative to manufacturing in high-income countries, and in some new ....Political economy of distortions to global agricultural markets. Farmers, agribusiness and governments in Australia and other food-exporting nations have put enormous efforts into seeking reductions in agricultural protectionism, particularly in the past two decades via the Cairns Group in GATT/WTO negotiations but also in bilateral and regional integration initiatives. Yet levels of protection have fallen little for agriculture relative to manufacturing in high-income countries, and in some newly industrializing countries that indicator has been rising. Improving our understanding as to why that is the case will ensure Australia gets a better return from its investment in that area of commercial diplomacy.Read moreRead less