Australian and US interest rate swap markets : comparison and linkages

We investigate and compare the determinants of US and Australian interest rate swap spreads and the linkages between these markets. The slope of the risk-free term structure is the most significant determinant and its importance is greater for longer terms to maturity. Interest rate levels and, in Australia, the default premium also have some impact. The influences of interest rate volatility, the liquidity premium and (in the USA) the default premium are small or negligible. We hypothesise, and our evidence confirms, that the US swap market significantly affects the Australian swap market but not vice-versa.

Modeling volatility and changes in the swap spread

We investigate the determinants of changes in U.S. interest rate swap spreads using a model that explicitly allows for volatility interactions between swaps of different terms to maturity. Changes in the swap spread are found to be positively related to interest rate volatility, to changes in the default risk premium in the corporate bond market, and to changes in the liquidity premium for government securities. Swap spread changes are negatively related to changes in the level of interest rates and changes in the slope of the term structure. We also find that there is a strong and significant volatility interaction among spreads for swaps of different maturities and that the process for the conditional variance of the spread is highly persistent across all maturities.

Determinants of capital structure of A-REITS and the global financial crisis

This paper contributes to the capital structure literature by investigating the determinants of capital structure of Australian Real Estate Investment Trusts (A-REITs) over the period 2006-2009. By using a panel approach and a Global Financial Crisis (GFC) dummy variable, our analysis incorporates the Global Financial Crisis (GFC) shock which appears to have affected the market after December 2007. We find that A-REIT size, profitability, tangibility, operating risk and number of growth opportunities impact similarly to many previous studies of international entities upon the degree of leverage. We also find mixed support for prevailing capital structure theories of Pecking Order, Trade-off and Agency Theory, but find that Market Timing Theory can be rejected over our sample period. With specific focus after onset of the GFC, we find that the relationship between capital structure and our independent variables is somewhat distorted. Consequently, the postulations of theory also become distorted whereby changes to capital structure come about because of the primary goal to survive, rather than managerial opportunism.

The allometric relationship between mean fibre diameter of mohair and the fleece-free liveweight of Angora goats over their lifetime

As mean fibre diameter (MFD) is the primary determinant of mohair price we aimed to quantify the lifetime changes in mohair MFDas Angora goats aged and grew. Measurements were made over 12 shearing periods on a population of Angora goats representing the current range and diversity of genetic origins including South African, Texan and interbred admixtures of these and Australian sources. Records of sire, dam, birthweight, birth parity, liveweight, fleece growth and fleece quality were taken for does and castrated males (wethers) (n = 267 animals). Fleece-free liveweights (FFL_wt) were determined for each goat at shearing time by subtracting the greasy fleece weight from the liveweight recorded immediately before shearing. A restricted maximum likelihood growth curve model was developed for relating MFD to FFL_wt, age and other measurements.Asimple way of describing the results is:MFD= k (FFL_wt)b E; where k is a parameter that can vary in a systematic way with shearing(age), breed, weaning weight, sire, dam and individual; b is a parameter that is the same for nearly the whole study; and E are independent errors from a log-normal distribution. The analysis shows that ^b = 0.34, with s.e. (^b) = 0.021. Thus, mohair MFD was allometrically related to the cube root of FFLwt over the lifetime of Angora goats. However, the allometric proportionality constant differed in a systematic way with age at shearing, genetic strain, weaning weight, sire, dam and individual. For Texan-breed goats, MFD decreased as weaning weight increased (P = 0.00016). The findings indicate that management factors that affect liveweight and weaning weight have lifetime effects on mohair fibre diameter and therefore the value of mohair and the profitability of the mohair enterprise.

The role of objective and subjective evaluation in the production and marketing of goats for meat

Objective and subjective evaluations of goats for meat production are related to important determinants of production and profitability. The most important attributes in assessment of goats for market are: live weight; body condition score; and the age of goats. As goats grow, their carcass and body organs increase in weight in proportion to the empty body weight. For farmers and field workers the linear regression approach for estimating carcass weight by measuring live weight is the most suitable as it accounts for 88 to 97% of the variation in carcass, offal and boneless meat weight. Live weight scales or heart girth tapes should be used and the risks and errors associated with these methods are summarized. The proportion of a live goat that is the carcass, known as dressing percentage, increases from 35% to about 50% as goats grow. The usefulness and errors associated with dressing percentage in field estimation are discussed. A valuable subjective method for estimating the nutritional status of goats is the use of body condition scoring as it accounts for 60 to 67% of the variation in live weight change, carcass weight and fat reserves of goats. A method for body condition scoring and a similar fat scoring system are explained. Body condition score is also associated with mortality risk and reproductive performance of goats. The number of permanent incisors in the lower jaw of goats is a method of estimating the age of goats but is biased by differences in live weights of goats. The value and role of ultrasound scanning the carcasses of goats is summarized. For the marketing of kid meat no permanent incisors should have erupted. Other useful practices for the successful marketing of goat meat are discussed including: knowing market specifications and chemical withholding periods; animal health; prevention of bruising; identification of goats; size of consignments; timeliness; provision of paperwork. A checklist is provided. The use of subjective and objective assessment techniques in evaluating goats for meat production will provide the best results. Where only subjective assessment techniques are available they will provide satisfactory performance provided the skills have been learnt and are applied.

Decentralization

Decentralization in Timor-Leste, as required by the constitution, will hve benefits as well as challenges to the young state.

Mohair research update 18 : the importance of the live weight of Angora goats on husbandry and production

The live weight of farm animals is strongly associated with production, profitability, management requirements and animal survival (Table 1). The mature live weight of farm animals and of goats is positively associated with their potential to grow rapidly. Live weight is directly related to the nutrient requirements of goats, irrespective of their productive state.

For Angora goats in particular, live weight is associated with mohair production and mohair fibre diameter, age at puberty, reproductive performance and ovulation rate, carcass attributes, meat production and sale value at the end of their productive life. Live weight also affects the timing of the eruption of incisor teeth.

Determinants of stock returns: Factors or systematic co-moments? Crisis versus non-crisis periods

In this paper we evaluate the intertemporal pricing performance of stock return determinants over the periods surrounding, and outside of, financial crises. The analysis focuses on the variables of size, book-to-market ratio, momentum, liquidity, and higher-order systematic co-moments. The evidence reveals that over non-crisis periods the market beta plays an important role in determining the cross-section of stock returns. Size, value, momentum, and liquidity also exhibit associations with the cross-section of stock returns. However, over crisis periods most of the variables we examined lose their explanatory power, suggesting that their usefulness is limited for investment purposes when financial markets experience crises. There is some evidence of coskewness pricing surrounding market crashes. Practitioners may consider coskewness over crisis periods.

How profitable is the Indian stock market?

In this paper, using a range of technical trading and momentum trading strategies, we show that the Indian stock market is profitable. We find robust evidence that investing in some sectors is relatively more profitable than investing in others. We show that sectoral heterogeneity with respect to profitability is a result of the gradual diffusion of information from the market to the sectors. Specifically, we show that while the market predicts returns of sectors, the magnitude of predictability varies with sectors. Our results are robust to a range of trading strategies. © 2014 Elsevier B.V.

Determinants and economic consequences of voluntary disclosure of internal control weaknesses in China

This paper investigates the determinants and economic consequences of disclosure of internal control weaknesses (ICWs) by Chinese listed firms under the voluntary disclosure regime over 2010-2011. We find that the probability of firms disclosing ICWs is not only associated with firm characteristics such as profitability, age and business complexity, but is also strongly related to the unique attributes of corporate governance and ownership structure in Chinese listed firms, e.g. the independence of the supervisory board, political connections, concentration of the top 3 shareholders' ownership and tradability of shares.Our results show that the severity of the ICWs disclosed is negatively and significantly associated with earnings response coefficients (ERCs), and audit assurance of ICRs has a significant moderating effect on the relationship between ICWs and ERCs. Our research adds further evidence to support the implementation of SOX-type regulations globally.

Geelong region survey of business trends 2014

The Deakin Business School and the Geelong Chamber of Commerce undertook a survey of business confidence and industry activity in the Geelong region in 2014. The main objectives of the research were to measure current and future business confidence, activity, and profitability and to provide information relevant to the needs of businesses and industry for planning and other purposes. Information wascollected by an on-line survey of 1,571 businesses with 194 usable responses representing a 12.3% response rate. The findings are relevant to responses frombusinesses registered with the Geelong Chamber of Commerce and the Geelong Central Marketing group. The report contains information about business activity, perceptions about the future of business in Geelong and the barriers that have to be addressed to ensure success.

Problems and prospects for corporate governance in Bangladesh: Some case studies basis analysis

Bangladesh is one of the least economically developed countries in the world. A lack of corporate governance creates problem for the economic development of the country. This study has been undertaken to observe whether corporate governance is being well-executed in Bangladesh and to inform views about which approach to corporate governance will be more acceptable to the county. The study has examined six cases to see whether corporate governance is properly utilised in the country. It is suggested that monetary, fiscal and exchange rate policies should be applied with appropriate diligence by the Securities and Exchange Commission, the Bangladesh Bank and the National Board of Revenue. It is expected that value can be added through arranging primary and supportive activities. Attention to inbound and outbound logistics is likely to improve productivity, enhancing profitability, long run sustainability and creating distinct competencies for the Bangladesh economy. Ultimately this may help to improve gross domestic product and the basic needs of the population.

Australia’s position on medicines policy in international forums: Intellectual property protection and public health

Universal access to affordable medicines, which are safe, efficacious and of high quality, and which are appropriately used, depends on national legislation that is in turn constrained by a range of international agreements. This regulatory configuration also affects the profitability of the pharmaceutical industry, domestic and international. Tensions and contradictions between industry profitability and public health objectives relate to access, innovation and regulation.

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).