The relationship between implied and realized volatility : evidence from the Australian stock index option market

This paper examines the relationship between the volatility implied in option prices and the subsequently realized volatility by using the S&P/ASX 200 index options (XJO) traded on the Australian Stock Exchange (ASX) during a period of 5 years. Unlike stock index options such as the S&P 100 index options in the US market, the S&P/ASX 200 index options are traded infrequently and in low volumes, and have a long maturity cycle. Thus an errors-in-variables problem for measurement of implied volatility is more likely to exist. After accounting for this problem by instrumental variable method, it is found that both call and put implied volatilities are superior to historical volatility in forecasting future realized volatility. Moreover, implied call volatility is nearly an unbiased forecast of future volatility.

The role of the internet on international market growth of Australian firms : an exploratory study

The Internet has been shown to positively influence the internationalisation activities of firms through enhanced information, knowledge and network development. Although there has been evidence of a positive impact of the Internet on internationalisation process components, it is vague as to whether the Internet has an impact on firm international market growth. This paper examines the role of the Internet in the outward internationalisation of a cross-national sample of 224 firms from Australia. The results show evidence that a there is a link between Internet usage, Internet intensity and the international market growth of the firm. The findings indicate that firms are using Internet technologies beyond simple e-mail and websites in their international marketing. For example, Internet directories and Internet market spaces are assisting international market expansion of the firm. Firms are integrating the Internet into international marketing processes such as advertising, marketing, market research and international market management as well as in data transference between company and supplier and company and customer. Further, there is evidence in this study of the statistical relationships between the use of website, e-mail and online sales with the international market growth of the firm.

The life-cycle of the fashion garment and the role of Australian mass market designers

This paper uses the lens of life-cycle thinking to discuss recent developments in the Australian mass market fashion industry, and to explore the opportunities and barriers to implementing lifecycle thinking within mass market design processes. Life-cycle analysis is a quantitative tool used to assess the environmental impact of a material or product. However the underlying thinking of life-cycle analysis can also be employed more generally, enabling a designer to assess their processes and design decisions for sustainability. A fashion designer employing life cycle thinking would consider every stage in the life of a garment from fibre and textiles through to consumer use, to eventual disposal and beyond disposal to reuse and later disassembly for fibre recycling. Although life-cycle thinking is rarely considered in the design processes of the fast-paced, price-driven mass market, this paper explores its potential and suggests ways in which it could be implemented.

Frantic fashion and Australia’s invisible designers : conversations on sustainability in the mass market

The majority of Australians will work, sleep and die in the garments of the mass market. Yet, as Ian Griffiths has termed it, the designers of these garments are ‘invisible’ (2000). To the general public, the values, opinions and individual design processes of these designers are as unknown as their names. However, the designer’s role is crucial in making decisions which will have impacts throughout the life of the garment. The high product volume within the mass market ensures that even a small decision in the design process to source a particular fabric, or to use a certain trim or textile finish, can have a profound environmental or social effect. While big companies in Australia have implemented some visible strategies for sustainability, it is uncertain how these may have flowed through to design practices. To explore this question, this presentation will discuss preliminary findings from in-depth semi-structured interviews with Australian mass market fashion designers and product developers. The aim of the interviews was to hear the voice of the insider – to listen to mass market designers describe their design process, discuss the Australian fashion industry and its future challenges and opportunities, and to comment on what a ‘sustainability’ for their industry could look like. These interviews will be discussed within the framework of design philosopher Tony Fry’s writing on design redirection for sustainability.

The knock-on from the knock-off : recent shifts within Australian mass market fashion design practice

Australia’s mass market fashion labels have traditionally benefitted from their peripheral location to the world’s fashion centres. Operating a season behind, Australian mass market designers and buyers were well-placed to watch trends play out overseas before testing them in the Australian marketplace. For this reason, often a designer’s role was to source and oversee the manufacture of ‘knock-offs’, or close copies of Northern hemisphere mass market garments. Both Weller (2007) and Walsh (2009) have commented on this practice. The knock-on effect from this continues to be a cautious, derivative fashion sensibility within Australian mass market fashion design, where any new trend or product is first tested and proved overseas months earlier. However, there is evidence that this is changing. The rapid online dissemination of global fashion trends, coupled with the Australian consumer’s willingness to shop online, has meant that the ‘knock-off’ is less viable. For this reason, a number of mass market companies are moving away from the practice of direct sourcing and are developing product in-house under a Northern hemisphere model. This shift is also witnessed in the trend for mass market companies to develop collections in partnership with independent Australian designers. This paper explores the current and potential effects of these shifts within Australian mass market design practice, and discusses how they may impact on designers, consumers and on the wider culture of Australian fashion.