Accounting information systems as institutional carriers: a case study of regulatory compliance in UK asset management houses

Previously, governments have responded to the impacts of economic failures and consequently have developed more regulations to protect employees, customers, shareholders and the economic wellbeing of the state. Our research addresses how Accounting Information Systems (AIS) may act as carriers for institutionalised practices associated with maintaining regulatory compliance within the context of UK Asset Management Houses. The AIS was found to be a strong conduit for institutionalized compliance related practices, utilising symbolic systems, relational systems, routines and artefacts to carry approaches relating to regulative, normative and cultural-cognitive strands of institutionalism. Thus, AIS are integral to the development and dissipation of best practice for the management of regulatory compliance. As institutional elements are clearly present we argue that AIS and regulatory compliance provide a rich context to further institutionalism. Since AIS may act as conduits for regulatory approaches, both systems adopters and clients may benefit from actively seeking to codify and abstract best practices into AIS. However, the application of generic institutionalized approaches, which may be applied across similar organizations, must be tempered with each firm’s business environment and associated regulatory exposure. A balance should be sought between approaches specific enough to be useful but generic enough to be universally applied.

Optimal performance fee and flow of funds in asset management contracts

This paper investigates the importance of ow of funds as an implicit incentive in the asset management industry. We build a two-period bi- nomial moral hazard model to explain the trade-o¤s between ow, per- formance and fees where e¤ort depends on the combination of implicit ( ow of funds) and explicit (performance fee) incentives. Two cases are considered. With full commitment, the investor s relevant trade-o¤ is to give up expected return in the second period vis-à-vis to induce e¤ort in the rst period. The more concerned the investor is with today s pay- o¤, the more willing he will be to give up expected return in the second period by penalizing negative excess return in the rst period. Without full commitment, the investor learns some symmetric and imperfect infor- mation about the ability of the manager to obtain positive excess return. In this case, observed returns reveal ability as well as e¤ort choices. We show that powerful implicit incentives may explain the ow-performance relationship with a numerical solution. Besides, risk aversion explains the complementarity between performance fee and ow of funds.

Optimal provision of implicit and explicit incentives in asset management contracts

This paper investigates the importance of the fiow of funds as an implicit incetive provided by investors to portfolio managers in a two-period relationship. We show that the fiow of funds is a powerful incentive in an asset management contract. We build a binomial moral hazard model to explain the main trade-ofIs in the relationship between fiow, fees and performance. The main assumption is that efIort depend" on the combination of implicit and explicit incentives while the probability distrioutioll function of returns depends on efIort. In the case of full commitment, the investor's relevant trade-ofI is to give up expected return in the second period vis-à-vis to induce efIort in the first período The more concerned the investor is with today's payoff. the more willing he will be to give up expected return in the following periods. That is. in the second period, the investor penalizes observed low returns by withdrawing resources from non-performing portfolio managers. Besides, he pays performance fee when the observed excess return is positive. When commitment is not a plausible hypothesis, we consider that the investor also learns some symmetríc and imperfect information about the ability of the manager to generate positive excess returno In this case, observed returns reveal ability as well as efIort choices exerted by the portfolio manager. We show that implicit incentives can explain the fiow-performance relationship and, conversely, endogenous expected return determines incentives provision and define their optimal leveIs. We provide a numerical solution in Matlab that characterize these results.

Digital rights management, concorrência e acesso ao conhecimento no mercado de livros digitais

Os livros digitais facilitam o acesso aos livros, por meio de fatores como a diminuição de barreiras geográficas e financeiras, constituindo um importante instrumento para a promoção do acesso ao conhecimento no século XXI. Como forma de combater a pirataria na rede, os ebooks são protegidos por digital rights management (DRM), uma trava tecnológica que permite que os titulares de direitos autorais protejam seus direitos por meio do controle do que os usuários conseguem fazer com os arquivos digitais. O DRM pode determinar variáveis como em quais circunstâncias, quantas vezes, por quanto tempo e em quais plataformas o um arquivo pode ser acessado. Essa trava, por sua vez, é protegida por leis anticircunvenção que proíbem que os usuários a alterem ou a removam. Em regra, essas leis não exigem que a arquitetura dos sistemas de DRM observe os mesmos limites e exceções impostos ao direito autoral. Por conta disso, é possível que os sistemas de DRM estabeleçam novas regras para o uso de trabalhos artísticos, que ultrapassam a proteção conferida pelas leis de propriedade intelectual. No mercado de livros digitais, tais regras têm um impacto particular na concorrência. Uma vez que as livrarias usam diferentes sistemas proprietários de DRM em seus livros digitais, compatíveis com um número limitado de dispositivos de leitura, o leitor enfrenta problemas de interoperabilidade para adquirir e-books em uma loja diferente daquela em que seu dispositivo de leitura foi comprado. Essa baixa interoperabilidade vincula os leitores a um determinado ecossistema e aumenta os efeitos de rede, custos de mudança e barreiras à entrada nesse mercado, propiciando a concentração. Como resultado, as livrarias são capazes de exercer um grande poder sobre o fluxo de informações nesse mercado, minando o potencial dos e-books para difundir o conhecimento e promover a leitura. Assim, esta pesquisa examina como os sistemas de DRM e as normas anticircunvenção afetam a concorrência no mercado de livros digitais e como essa dinâmica concorrencial, por sua vez, impacta no acesso aos livros. A análise inicia-se com a descrição do mercado de livros digitais e avança à discussão teórica, consistente na revisão da literatura especializada sobre direito autoral, direito da concorrência e acesso ao conhecimento. Sob uma perspectiva de desenvolvimento como liberdade, conclui-se que a revisão das leis anticircunvenção é essencial para fomentar a concorrência nesse mercado, garantir a autonomia dos indivíduos e concretizar o potencial dos e-books para a expansão do acesso ao conhecimento.

Regional perspectives on digital disaster management in Latin America and the Caribbean

Includes bibliography

Asset management of wastewater networks

Asset Management (AM) is a set of procedures operable at the strategic-tacticaloperational level, for the management of the physical asset’s performance, associated risks and costs within its whole life-cycle. AM combines the engineering, managerial and informatics points of view. In addition to internal drivers, AM is driven by the demands of customers (social pull) and regulators (environmental mandates and economic considerations). AM can follow either a top-down or a bottom-up approach. Considering rehabilitation planning at the bottom-up level, the main issue would be to rehabilitate the right pipe at the right time with the right technique. Finding the right pipe may be possible and practicable, but determining the timeliness of the rehabilitation and the choice of the techniques adopted to rehabilitate is a bit abstruse. It is a truism that rehabilitating an asset too early is unwise, just as doing it late may have entailed extra expenses en route, in addition to the cost of the exercise of rehabilitation per se. One is confronted with a typical ‘Hamlet-isque dilemma’ – ‘to repair or not to repair’; or put in another way, ‘to replace or not to replace’. The decision in this case is governed by three factors, not necessarily interrelated – quality of customer service, costs and budget in the life cycle of the asset in question. The goal of replacement planning is to find the juncture in the asset’s life cycle where the cost of replacement is balanced by the rising maintenance costs and the declining level of service. System maintenance aims at improving performance and maintaining the asset in good working condition for as long as possible. Effective planning is used to target maintenance activities to meet these goals and minimize costly exigencies. The main objective of this dissertation is to develop a process-model for asset replacement planning. The aim of the model is to determine the optimal pipe replacement year by comparing, temporally, the annual operating and maintenance costs of the existing asset and the annuity of the investment in a new equivalent pipe, at the best market price. It is proposed that risk cost provide an appropriate framework to decide the balance between investment for replacing or operational expenditures for maintaining an asset. The model describes a practical approach to estimate when an asset should be replaced. A comprehensive list of criteria to be considered is outlined, the main criteria being a visà- vis between maintenance and replacement expenditures. The costs to maintain the assets should be described by a cost function related to the asset type, the risks to the safety of people and property owing to declining condition of asset, and the predicted frequency of failures. The cost functions reflect the condition of the existing asset at the time the decision to maintain or replace is taken: age, level of deterioration, risk of failure. The process model is applied in the wastewater network of Oslo, the capital city of Norway, and uses available real-world information to forecast life-cycle costs of maintenance and rehabilitation strategies and support infrastructure management decisions. The case study provides an insight into the various definitions of ‘asset lifetime’ – service life, economic life and physical life. The results recommend that one common value for lifetime should not be applied to the all the pipelines in the stock for investment planning in the long-term period; rather it would be wiser to define different values for different cohorts of pipelines to reduce the uncertainties associated with generalisations for simplification. It is envisaged that more criteria the municipality is able to include, to estimate maintenance costs for the existing assets, the more precise will the estimation of the expected service life be. The ability to include social costs enables to compute the asset life, not only based on its physical characterisation, but also on the sensitivity of network areas to social impact of failures. The type of economic analysis is very sensitive to model parameters that are difficult to determine accurately. The main value of this approach is the effort to demonstrate that it is possible to include, in decision-making, factors as the cost of the risk associated with a decline in level of performance, the level of this deterioration and the asset’s depreciation rate, without looking at age as the sole criterion for making decisions regarding replacements.

On the Efficiency of the Benchmarks Used in the Asset Management

In this work we studied the efficiency of the benchmarks used in the asset management industry. In chapter 2 we analyzed the efficiency of the benchmark used for the government bond markets. We found that for the Emerging Market Bonds an equally weighted index for the country weights is probably the more suited because guarantees maximum diversification of country risk but for the Eurozone government bond market we found a GDP weighted index is better because the most important matter is to avoid a higher weight for highly indebted countries. In chapter 3 we analyzed the efficiency of a Derivatives Index to invest in the European corporate bond market instead of a Cash Index. We can state that the two indexes are similar in terms of returns, but that the Derivatives Index is less risky because it has a lower volatility, has values of skewness and kurtosis closer to those of a normal distribution and is a more liquid instrument, as the autocorrelation is not significant. In chapter 4 it is analyzed the impact of fallen angels on the corporate bond portfolios. Our analysis investigated the impact of the month-end rebalancing of the ML Emu Non Financial Corporate Index for the exit of downgraded bond (the event). We can conclude a flexible approach to the month-end rebalancing is better in order to avoid a loss of valued due to the benchmark construction rules. In chapter 5 we did a comparison between the equally weighted and capitalization weighted method for the European equity market. The benefit which results from reweighting the portfolio into equal weights can be attributed to the fact that EW portfolios implicitly follow a contrarian investment strategy, because they mechanically rebalance away from stocks that increase in price.

Progetto di integrazione di strumenti per l'asset management in funzione di privacy e sicurezza

Progetto per l'integrazione degli strumenti attualmente utilizzati per l'amministrazione degli asset in funzione anche della normativa in vigore.

Comparative Study of Digital Rights Management Systems for Music and Text Files

Digital Rights Management Systems (DRMS) are seen by content providers as the appropriate tool to, on the one hand, fight piracy and, on the other hand, monetize their assets. Although these systems claim to be very powerful and include multiple protection technologies, there is a lack of understanding about how such systems are currently being implemented and used by content providers. The aim of this paper is twofold. First, it provides a theoretical basis through which we present shortly the seven core protection technologies of a DRMS. Second, this paper provides empirical evidence that the seven protection technologies outlined in the first section of this paper are the most commonly used technologies. It further evaluates to what extent these technologies are being used within the music and print industry. It concludes that the three main Technologies are encryption, password, and payment systems. However, there are some industry differences: the number of protection technologies used, the requirements for a DRMS, the required investment, or the perceived success of DRMS in fighting piracy.

The Application of Digital Rights Management Systems in the Music Industry - An Empirical Investigation

Technology advances in hardware, software and IP-networks such as the Internet or peer-to-peer file sharing systems are threatening the music business. The result has been an increasing amount of illegal copies available on-line as well as off-line. With the emergence of digital rights management systems (DRMS), the music industry seems to have found the appropriate tool to simultaneously fight piracy and to monetize their assets. Although these systems are very powerful and include multiple technologies to prevent piracy, it is as of yet unknown to what extent such systems are currently being used by content providers. We provide empirical analyses, results, and conclusions related to digital rights management systems and the protection of digital content in the music industry. It shows that most content providers are protecting their digital content through a variety of technologies such as passwords or encryption. However, each protection technology has its own specific goal, and not all prevent piracy. The majority of the respondents are satisfied with their current protection but want to reinforce it for the future, due to fear of increasing piracy. Surprisingly, although encryption is seen as the core DRM technology, only few companies are currently using it. Finally, half of the respondents do not believe in the success of DRMS and their ability to reduce piracy.