What determines the yen swap spread?

We investigate if Japanese yen denominated interest rate swap spreads price risks in addition to liquidity and default risk. These additional risks include: the time-varying correlation between interest rates of different types and maturities; business cycle risk; and market skewness risk. Our analysis, over a number of different maturities and sample periods, supports the existence of an additional risk premium. We also show that the time-varying correlation between short term market interest rates (e.g., TIBOR) and the longer term Government bond yield (e.g., Gensaki) is of particular importance. Japanese yen swap spreads are shown to contain both pro-cyclical and counter-cyclical elements of business cycle risk, positive risk premia for skewness risk and variable risk premia for correlation risk (between fixed and floating interest rates).

Vector autoregressions and macroeconomic modeling: an error taxonomy

In this article we investigate the theoretical behaviour of finite lag VAR(n) models fitted to time series that in truth come from an infinite order VAR(∞) data generating mechanism. We show that the overall error can be broken down into two basic components, an estimation error that stems from the difference between the parameter estimates and their population ensemble VAR(n) counterparts, and an approximation error that stems from the difference between the VAR(n) and the true VAR(∞). The two sources of error are shown to be present in other performance indicators previously employed in the literature to characterize, so called, truncation effects. Our theoretical analysis indicates that the magnitude of the estimation error exceeds that of the approximation error, but experimental results based upon a prototypical real business cycle model and a practical example indicate that the approximation error approaches its asymptotic position far more slowly than does the estimation error, their relative orders of magnitude notwithstanding. The experimental results suggest that with sample sizes and lag lengths like those commonly employed in practice VAR(n) models are likely to exhibit serious errors of both types when attempting to replicate the dynamics of the true underlying process and that inferences based on VAR(n) models can be very untrustworthy.

A macro-analysis of financial decisions : an examination of special dividend announcements

This paper investigates macro-level explanations for why firms pay special dividends. We find both the business cycle and market condition affect the propensity and abnormal returns of special dividends. Firms are more likely to announce special dividends in market or economic downturns than upturns. They tend to use additional cash for business growth in expansions and distribute it to reduce agency costs in contractions. The signaling effect of special dividends is stronger and companies with these announcements are better performers in recessions than in expansions. This research sheds light on and enhances the understanding of why firms disburse extra cash dividends at the aggregate level.

The life cycle of the AFL footballer : If you sell your body, mind and soul what is left when the cheering stops?

In this paper we will draw on research conducted for the AFL which, in part, illuminated aspects of the Faustian pact that many young men enter into in order to become an elite level, professional footballer in what is increasingly a global sports entertainment industry. In order to develop an identity as an AFL footballer these young men willingly sell their body, mind and soul to one club, or to many. For varying lengths of time these pacts can have significant payoffs - in terms of a sense of self, and in monetary terms. For many though, these payoffs are limited and must be accounted for sometime in the future - an accounting that in Faustian terms, can carry significant costs to the body, mind and soul long after the cheering has stopped, and when the benefits come mainly in the form of memories. In this paper we argue that elements of these pacts can be identified and analysed via the following: understanding AFL as a sports entertainment business; using Foucault's work on the care of the self to explore what it means to be an elite level professional and the demands made by others on the body, mind and soul of players; and the idea that a career as an elite level professional footballer has a number of phases (early, mid and late) in which the nature of a professional identity - shaped by different demands on the body, mind and soul- changes.

Changing teaching practice using a school improvement cycle

This paper discusses the actions, strategies and responses of teachers during their involvement with a short cycle school improvement model in four schools. The school improvement cycles are designed to build the leadership of principals to support teachers at an individual level through a web of decision making and practices. In these cycles, teachers are both more supported and more accountable for implementing changed classroom practices in order to bring about improved student outcomes. T he school improvement model follows a pattern of decision making and negotiation across and between layers of leadership within the network and the school, but for improvement to occur at the level of the student, the teacher’s pedagogical practices need to be r(e)negotiated to ensure that teaching practice meet the needs of the students.
However, evaluating teacher practice is risky business. Teachers can say, and believe, that their practices are providing the best for their students, but this is an area of uncertainty. Using a number of strategies including observation of teacher meetings, teacher interviews and video capture, the research will investigate the issue of how directives for change are translated into classroom practice. The observation of meetings of teachers will provide an indication of the type of change required and the proposed strategies. Video-capture, which is followed by teacher interviews, will provide further information about changing teaching practice.
With teacher permission, students in the research will also view the video snippets to indicate what particular pedagogy was instrumental in their learning, providing substantial feedback to the teacher on what works best for that cohort of students at that time. Teachers will be provided with the opportunity to reflect on and learn from their practice, using video-capture as a self-reflective tool. Teachers can employ video capture as a strategy to assess their management of students, their pedagogical approaches, teaching strategies and student responses and is an emerging area of research of interest to teachers and teacher educators (e.g. Seidel, Sturmer, Blomberg, Kobarg, Schwindt, 2011). The paper will provide examples of changed teacher practice through vignettes of a number of schools, teachers and classrooms and will explore the methodological reflexivity associated with this dual role of the research: to evaluate, and to support improvement.

Validating the impact of EVM on project life cycle

With the inevitable increase in size and complexity of construction projects, the need for proper control is increasing. Considering the fact that each project strives for excellence, numerous studies have been conducted over the years to measure performance and investigate factors that are really critical towards project success. Earned Value Management is a project performance evaluation technique which enables industry professionals to closely monitor project performance in both time and cost .The aim of this paper is to examine the result of proper Earned Value Management (EVM) implementation on different project life cycle (PLC) and validate the impact on project success.

The study investigates different success factors in construction industry with special focus on previous researchers’ work which studied the importance of cost control in project success especially in fragmented industry like construction, followed up with three different case studies to analyze the positive impact of EVM implementation on construction projects. Furthermore, for data triangulation purpose, case study analysis will be supported by interviews with specialists working in the UAE construction industry to cross check the outcomes of previous researches.
The research shows that EVM application on cost control in construction projects is not only a crucial management task which is a key to the success of the business but also its influence on project success depends on the time of implementation. It requires a number of up-to-date input data consistently throughout the construction phase. Assigning the right budgets, calculating accurate estimates and monitoring actual costs throughout different project stages are the three main drivers of an effective control through PLC staring from inception stage till completion. EVM proved to be of vital importance due to alarming escalation of construction costs which needs to be especially monitored and controlled. Senior management support and availability of professional staff to execute cost control systems are key factors towards successful implementation

Aligning business and IT strategies in multi-business organizations

The alignment of business and information technology (IT) strategies is an important and enduring theoretical challenge for the information systems discipline, remaining a top issue in practice over the past 20 years. Multi-business organizations (MBOs) present a particular alignment challenge because business strategies are developed at the corporate level, within individual strategic business units and across the corporate investment cycle. In contrast, the extant literature implicitly assumes that IT strategy is aligned with a single business strategy at a single point in time. This paper draws on resource-based theory and path dependence to model functional, structural, and temporal IT strategic alignment in MBOs. Drawing on Makadok's theory of profit, we show how each form of alignment creates value through the three strategic drivers of competence, governance, and flexibility, respectively. We illustrate the model with examples from a case study on the Commonwealth Bank of Australia. We also explore the model's implications for existing IT alignment models, providing alternative theoretical explanations for how IT alignment creates value.