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
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
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
Creating Sustainability-Oriented Fintech Lending Platforms in Australia. This project aims to investigate how FinTech lending companies can use customers' environmental information to access their creditworthiness, and whether lending decisions based on environmental information can promote pro-environmental behaviour and expedite the societal transformation towards a low-carbon economy. These aims will be achieved through a quantitative analysis that evaluates the use of a customer's "carbon fo ....Creating Sustainability-Oriented Fintech Lending Platforms in Australia. This project aims to investigate how FinTech lending companies can use customers' environmental information to access their creditworthiness, and whether lending decisions based on environmental information can promote pro-environmental behaviour and expedite the societal transformation towards a low-carbon economy. These aims will be achieved through a quantitative analysis that evaluates the use of a customer's "carbon footprint" for predicting default risk, and a field experiment that analyses the economic and environmental benefits of the proposal. The project intends to develop a new approach that contributes to developing a sustainable lending platform for Fintech firms and establishing sustainable FinTech standards for policymakers.Read moreRead less
Reshaping the landscape of bank monitoring and risk disclosures. The project will develop an innovative machine-learning-based approach for measuring, monitoring and evaluating bank lending activities and risk disclosures to take advantage of the big data available. It will use multidimensional data to produce more relevant metrics for assessing bank risks and risk disclosure quality and apply them in regulatory policy evaluation. The project findings will significantly advance the knowledge on ....Reshaping the landscape of bank monitoring and risk disclosures. The project will develop an innovative machine-learning-based approach for measuring, monitoring and evaluating bank lending activities and risk disclosures to take advantage of the big data available. It will use multidimensional data to produce more relevant metrics for assessing bank risks and risk disclosure quality and apply them in regulatory policy evaluation. The project findings will significantly advance the knowledge on mitigating banking misconduct. They will also equip regulatory authorities with an efficient monitoring tool and an early-warning device to promote better lending and risk disclosure practices, and foster a more transparent and stable financial system to support financial intermediation in Australia and worldwide.Read moreRead less
Investment irreversibility, policy uncertainty and hedging strategies. This project aims to investigate how firms’ financial hedging and production decisions reduce shocks caused by potentially unstable regulatory policies, particularly when the investments are largely irreversible. Unstable regulatory policies induce shocks to the economy, but a joint hedging and production decision is more effective than using financial hedging alone to smooth shocks. Firms that anticipate regulatory change al ....Investment irreversibility, policy uncertainty and hedging strategies. This project aims to investigate how firms’ financial hedging and production decisions reduce shocks caused by potentially unstable regulatory policies, particularly when the investments are largely irreversible. Unstable regulatory policies induce shocks to the economy, but a joint hedging and production decision is more effective than using financial hedging alone to smooth shocks. Firms that anticipate regulatory change alter their responses to policies, potentially rendering those policies less effective. This project’s investigation of Australian mining and energy industries should provide understanding of firms’ hedging behaviour and could have implications for the design of policy.Read moreRead less
The Effects of International Climate Policy on Financial Markets. This project aims to develop and test a new methodology to determine the potential consequences of effective action on climate change for the asset values of fossil fuel firms. Taking into consideration policy signals from the UN Climate Change Meetings, such as the Paris Agreement, this project attempts to determine whether the market was already factoring in a significant probability of effective action on climate change, and wh ....The Effects of International Climate Policy on Financial Markets. This project aims to develop and test a new methodology to determine the potential consequences of effective action on climate change for the asset values of fossil fuel firms. Taking into consideration policy signals from the UN Climate Change Meetings, such as the Paris Agreement, this project attempts to determine whether the market was already factoring in a significant probability of effective action on climate change, and whether this impacted firm value. The project intends to provide an assessment of risk associated with stranded assets to policymakers and executives in fossil-fuel and carbon-intensive sectors, and seeks to develop data, models and new analytical approaches that contribute to valuing environmental risk factors.Read moreRead less