Geared equity investments : a case study of tax arbitrage down under

Geared Equity Investment (GEI) contracts are an over-the-counter financial derivative product offered by Macquarie Bank, Ltd. to individual investors in Australia and New Zealand as a managed-risk investment in local shares carrying significant tax shield benefits. Upon issuance, a geared equity contract has three stakeholders: (1) the investor; (2) the issuer; and (3) the national tax authority. We assess the value of these contracts to each stakeholder and their support for tax arbitrage. We find that the national tax authority provides a significant subsidy to GEI contracts via tax shield benefits. These benefits support investor tax arbitrage in certain cases and issuer tax arbitrage in all cases examined.

The halloween effect and Japanese equity prices : myth or exploitable anomaly

Bouman and Jacobsen (American Economic Review 92(5), 1618–1635, 2002) examine monthly stock returns for major world stock markets and conclude that returns are significantly lower during the May–October periods versus the November–April periods in 36 of 37 markets examined. They argue that, in general, the Halloween strategy outperforms the buy and hold strategy thereby casting doubt on the validity of the efficient market paradigm. More recently, Maberly and Pierce (Econ Journal Watch 1(1), 29–46, 2004) re-examine the evidence for U.S. equity prices and conclude that Bouman and Jacobsen’s results are not robust to alternative model specifications. Extending prior research, this paper examines the robustness of the Halloween strategy to alternative model specifications for Japanese equity prices. The Halloween effect is concentrated in the period prior to the introduction of Nikkei 225 index futures in September 1986. After the internationalization of Japanese financial markets in the mid-1980s, the Halloween effect disappears.

Principles of equity and trusts

This fourth edition of Principles of Equity and Trusts has been comprehensively updated and revised. It retains its original style of presenting principles and remedies relevant to equity and trusts in a straightforward and succinct manner.This new edition includes a discussion of new developments in knowing receipt constructive trusts, resulting trusts, charitable trusts, injunctions, equitable recission and forfeiture. All chapters have been fully revised, with significant new analysis in a range of chapters including those dealing with the relationship between common law and equity, fiduciary obligations and certainty rules for the creation of trusts.New case discussions in this edition include:Stack v Dowden (2007) (the House of Lords considering the presumptive application of resulting trusts in domestic de facto relationships);Trustees of the Property of Cummins (a bankrupt) v Cummins [2006] (the High Court considering the presumptive application of purchase money resulting trusts in a marriage relationship);Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) (the High Court considering the scope and application of knowing receipt constructive trusts);Twinsectra v Yardley [2002] and Barlow Clowes International Ltd (in liq) v Eurotrust International [2006] 1 All ER 477 ( the House of Lords considering the dishonesty test relevant to knowing assistance constructive trusts) and Commissioner of Taxation v Word Investment Ltd [2006] (the Federal Court considering the scope of the charitable purpose test).This new edition remains an ideal book for undergraduate study, covering all aspects of equity and trusts jurisprudence in an accessible, comprehensive and up to date style.

Indigenous higher education student equity : focusing on what works

The rates of higher education access, participation and completion for Indigenous students are much lower than those for non-Indigenous students in Australia. This paper argues for a research-led focus on what works in terms of Indigenous  student equity in higher education. Undertaking independent evaluation of  existing initiatives and leveraging the experience of hundreds of successful Indigenous graduates, it may be possible to articulate some of the ways in which success has been, and can be, achieved, despite the challenges that face Indigenous students. In other words, it may be possible to articulate some aspects of what works for some Indigenous people in relation to higher education. A focus on articulating strategies that Indigenous individuals and communities might adopt in relation to higher education should be developed alongside the management of systemic problems through a range of means. The “successfocused” approach would provide one of a suite of approaches that may be helpful in addressing Indigenous student equity.

Understanding quality and equity of schooling in Scotland : locating educational traditions globally

This paper provides a descriptive analysis of the OECD’s (2007) national report on Scottish education, Quality and equity of schooling in Scotland, while also briefly considering the Scottish government’s Diagnostic Report, prepared for the review. The national report is situated against Scottish traditions of schooling, particularly the view that access to academic curricula for all is a democratic and egalitarian approach, and also set against the changing role of the OECD. On the latter, the paper argues that the OECD, in the context of globalisation, has become more of a policy actor in its own right, in addition to its more traditional think-tank function. The OECD is a now significant transnational policy actor in education, contributing to the emergent global education policy field. The overarching argument proffered is that debates provoked by the OECD’s report, for example the David Raffe/Richard Teese exchange in the Scottish Educational Review, 40(1), 2008, stem from tensions between the new supranational expression of political and policy authority as articulated in the OECD’s report and that located more traditionally within the nation. The academic curricula for all, the Scottish tradition, is challenged by the OECD report, which supports more diverse curricula provision, including more vocational education in schools, particularly at the post-compulsory phase. We note, drawing on theoretical and empirical insights of Bourdieu, that the success of the former demands pedagogies which scaffold for those students not possessing the requisite cultural capitals for success with academic curricula, while the latter demands a strategic effort to ensure parity of esteem between different curricular provisions.

Going negative : what to do with negative book equity stocks

A firm's book equity is a measure of the value held by a firm's ordinary shareholders. Increasingly, it is being reported as a negative number. Because a firm's limited liability structure means that shareholders cannot have negative value, negative book equity has no obvious interpretation. Consequently, both practitioners and academics typically omit such stocks in their analysis .While these stocks are small in number, they are disproportionately represented in extreme growth-value sectors and, therefore, can have an impact on applications where value is defined in terms of book equity. The authors propose a new approach that classifies negative book equity stocks across the growth-value spectrum by considering how close their returns correspond to those of stocks that fit more obviously into these classifications .They find that this new value factor, which includes negative book equity stock, is economically and statistically different from the old value factor that excludes such stocks. Although they illustrate how this approach can be used to classify negative book equity stock, the approach is quite general and may be used whenever particular accounting data are unavailable or otherwise suspect.