The economic significance of CDS price discovery

© 2015 Springer Science+Business Media New York Between 2005 and 2009, we document evident time-varying credit risk price discovery between the equity and credit default swap (CDS) markets for 174 US non-financial investment-grade firms. We test the economic significance of a simple portfolio strategy that utilizes fluctuation in CDS spreads as a trading signal to set stock positions, conditional on the CDS price discovery status of the reference entities. We show that a conditional portfolio strategy which updates the list of CDS-influenced firms over time, yields a substantively larger realized return net of transaction cost over the unconditional strategy. Furthermore, the conditional strategy’s Sharpe ratio outperforms a series of benchmark portfolios over the same trading period, including buy-and-hold, momentum and dividend yield strategies.

Jones -v- Bartlett: landlords` liability to tenants and members of their household in negligence

According to the latest available statistics, in 1997-98, of the total of seven million Australian households, two million were renting their dwelling from a State housing authority or private landlords.Therefore, the decision on the scope of landlords' liability to tenants, members of their households, and guests in the right of the tenant handed down by the High Court of Australia in November 2000 was not only of legal, but also of social and economic significance. This note will discuss the Jones v Bartlett case in the context of the traditional common law approach to landlords' liability and the ground-breaking, if flawed, case of Northern Sandblasting Pty Ltd v Harris.

A GARCH model for testing market efficiency

In this paper we propose a generalised autoregressive conditional heteroskedasticity (GARCH) model-based test for a unit root. The model allows for two endogenous structural breaks. We test for unit roots in 156 US stocks listed on the NYSE over the period 1980 to 2007. We find that the unit root null hypothesis is rejected in 40% of the stocks, and only in four out of the nine sectors the null is rejected for over 50% of stocks. We conclude with an economic significance analysis, showing that mostly stocks with mean reverting prices tend to outperform stocks with non-stationary prices.

Challenges for developing EAP practice in anglophone contexts

English for academic purposes (EAP), the academically-focused branch of English for specific purposes (Johns & Dudley-Evans, 1991), aims to facilitate learners’ participation in the English language academic community (Hyland & Hamp-Lyons,2002; Prosser, 1994). The EAP sector has expanded rapidly in recent years (Liyanage & Walker, 2014b) and now plays a significant role within Anglophone and non-Anglophone higher education contexts (Ashraf, Hakim, & Zulfiqar, 2014; Basturkmen, 2012; Kafle, 2014). Global trends which associate English and the West with educational prestige (Kubota & Lehner, 2004), assigning them a “perceived superiority” (Liyanage & Walker, 2014b, p. 165) over other languages and educational paradigms, have led considerable numbers of students to undertake English-medium higher education (Brown, 2014; Doiz, Lasagabaster, & Sierra, 2013; Kim, Tatar, & Choi, 2014). These developments have cemented the international status of the language, which has also has become the global medium for academic communication and a lingua franca in general (Hyland & Hamp-Lyons, 2002; Jenkins, 2011; Seidlhofer, 2005). Increased student mobility and preferences for English-medium education have been of particular economic significance to Britain, Australasia and North America, referred to as the BANA nations, which have experienced a boost in overseas enrolments (Andrade, 2006; Saw, Abbott, Donaghey, & McDonald, 2013; Terraschke & Wahid, 2011). Australia, New Zealand and the United Kingdom are amongst the countries with the highest proportion of international tertiary enrolments globally (OECD, 2014), and the United States and Canada also host a significant number of overseas students (Choudaha & Chang, 2012; Siddiq, Nethercote, Lye, & Baroni, 2012).

Publication bias in the economic freedom and economic growth literature

The impact of institutions on economic performance has attracted significant attention from researchers, as well as from policy reformers. A rapidly growing area in this literature is the impact of economic freedom on economic growth. The aim of this paper was to explore publication bias in this literature by means of traditional funnel plots, meta‐significance testing, as well as by bootstrapping these meta‐significance tests. When all the available estimates are combined and averaged, there seems to be evidence of a genuine and positive economic freedom – economic growth effect. However, it is also shown that the economic freedom – economic growth literature is tainted strongly with publication bias. The existence of publication bias makes it difficult to identify the magnitude of the genuine effect of economic freedom on economic growth. The paper explores the differences between aggregate and disaggregate measures of economic freedom and shows that selection effects are stronger when aggregate measures are used.

The significance of social influences and established housing values

Investment in housing represents the largest single source of wealth for individuals and has an important role in the macro economy. Traditional economic indicators cannot always observe the degree of purchaser and vendor willingness and therefore consideration should also be given to characteristics of buyers and sellers in the marketplace. This study draws the disciplines of housing research and demography closer and looks to social indicators for an insight into residential housing markets.

The research analysed changes in the value of established residential house prices in Brisbane and the influence of variations in social structure on a longitudinal time series basis. Results confirmed the existence of strong linkages between social constructs and established house prices. While it is acknowledged that established house values are significantly influenced by external! economic and political factors, this research confirmed that serious consideration must also be given to social factors and demographic variables.

Tourism and economic growth: a panel data analysis for Pacific Island countries

The contribution of tourism to the economic growth of Pacific Island countries (PICs) has achieved significance in the past decade. The shift in the economic policies of the PICs from the late 1980s has been decisively away from import substitution and agriculture to urban-based manufacturing and services sectors. Tourism is the main component of the services sector in the PICs. The contribution of tourism to economic growth in Fiji, Tonga, the Solomon Islands and Papua New Guinea is expected to grow. The authors use panel data for the four PICs to test the long-run relationship between real GDP and real tourism exports. They find support for panel cointegration and the results suggest that a 1% increase in tourism exports increases GDP by 0.72% in the long run and by 0.24% in the short run.

Significance of environment in the assessment of sustainable development : the case for South West Victoria

The assessment of sustainable development is often based on the three pillars of sustainability model or triple bottom line using a set of indicators that evaluate the social, economic and environmental systems. It is thought that by measuring the performance of each system information can be gained about the sustainability of the whole system. However, this represents a disconnect between sustainability theory and the practice of sustainability evaluation as there is no attempt to evaluate if this assumption is true. During the development of a sustainability assessment framework for south west Victoria, Australia, it has become evident that this approach to sustainability assessment does not provide an accurate evaluation of system sustainability. Throughout this project, from stakeholder prioritisation of indicators to final multiple criteria analysis of sustainability, the environmental indicators were found to be the most important for the region’s sustainability. As a consequence, the assessment produced shows that in south west Victoria, sustainability is largely determined by the condition of the environment. This finding highlights the current disconnection between theory and the reality of sustainability. Thus, we discuss a framework for sustainability assessment that attempts to re-connect theory to practice.

The importance and significance of heritage conservation of ex-tin mining landscape in Perak, the Abode of Grace

The thematic history of tin mining in Perak reveals the evolution of tin production, technology, infrastructure, transportation, social and the state economic development. The mining expansion that spread from Larut district to Kinta at the end of nineteenth century has distinctively impact on it's landscape. The surviving evidences that spread over Kinta demonstrates the importance and significance of conservation of ex-tin mining places. These surviving evidences are testimony of the past history and legacy for the present and future generations.