Essays on regulation and risk

In this thesis, we investigate some aspects of the interplay between economic regulation and the risk of the regulated firm. In the first chapter, the main goal is to understand the implications a mainstream regulatory model (Laffont and Tirole, 1993) have on the systematic risk of the firm. We generalize the model in order to incorporate aggregate risk, and find that the optimal regulatory contract must be severely constrained in order to reproduce real-world systematic risk levels. We also consider the optimal profit-sharing mechanism, with an endogenous sharing rate, to explore the relationship between contract power and beta. We find results compatible with the available evidence that high-powered regimes impose more risk to the firm. In the second chapter, a joint work with Daniel Lima from the University of California, San Diego (UCSD), we start from the observation that regulated firms are subject to some regulatory practices that potentially affect the symmetry of the distribution of their future profits. If these practices are anticipated by investors in the stock market, the pattern of asymmetry in the empirical distribution of stock returns may differ among regulated and non-regulated companies. We review some recently proposed asymmetry measures that are robust to the empirical regularities of return data and use them to investigate whether there are meaningful differences in the distribution of asymmetry between these two groups of companies. In the third and last chapter, three different approaches to the capital asset pricing model of Kraus and Litzenberger (1976) are tested with recent Brazilian data and estimated using the generalized method of moments (GMM) as a unifying procedure. We find that ex-post stock returns generally exhibit statistically significant coskewness with the market portfolio, and hence are sensitive to squared market returns. However, while the theoretical ground for the preference for skewness is well established and fairly intuitive, we did not find supporting evidence that investors require a premium for supporting this risk factor in Brazil.

Aversão à perda, assimetria nos co-movimentos de mercado e viés doméstico: caso Japão e Reino Unido

Analogamente à Amonlirdviman e Carvalho (2009), que calibrou o modelo de Aversão à Perda Míope de Benartzi and Thaler (1995) para o caso dos Estados Unidos, esta dissertação analisa o problema de alocação de portfolio de ações para o investidor japonês/britânico avesso à perda que decide entre ações domésticas e estrangeiras sujeito às assimetrias nos co-movimentos dos retornos a fim de investigar o papel desta preferência e da evidência empírica de assimetria como potenciais explicações para o viés doméstico em ações. Ao calibrar o modelo para o investidor japonês e britânico, esta dissertação realiza um teste de robustez para o trabalho de Amonlirdviman and Carvalho (2009). Os resultados de inferência dos ganhos com a diversificação internacional apontam que pelo menos parte do viés doméstico existente no caso do Japão e do Reino Unido pode ser explicado pela introdução de preferências com aversão à perda e pela assimetria nos co-movimentos dos retornos.

Co-creative media : theorising digital storytelling as a platform for researching and developing participatory culture

This paper considers the question, ‘what is co-creative media, and why is it a useful idea in social media research’? The term ‘co-creative media’ is now used by Creative Industries researchers at QUT to describe their digital storytelling practices. Digital storytelling is a set of collaborative digital media production techniques that have been used to facilitate social participation in numerous Australian and international contexts. Digital storytelling has been adapted by Creative Industries researchers at QUT as a platform for researching the potential of vernacular creativity in a variety of contexts, including social inclusion of marginalized and disadvantaged groups; inclusion in public histories of narratives that might be overlooked; and articulation of voices that otherwise remain silent in the formulation of social and economic development strategies. The adaption of digital storytelling to different contexts has been shaped by the reflexive, recursive, and pragmatic requirements of action research. Amongst other things, this activity draws attention to the agency of researchers in facilitating these kinds of participatory media processes and outcomes. This discussion serves to problematise concepts of participatory media by introducing the term ‘co-creative media’ and differentiating these from other social media production practices.

Co-creating games: A co-evolutionary analysis

ABSTRACT. The phenomenon of consumer co-creation is often framed in terms of whether either economic market forces or socio-cultural non-market forces ultimately dominate. We propose an alternate model of consumer co-creation in terms of co-evolution between markets and non-markets. Our model is based on a recent ethnographic study of a massively multiplayer online game through its development, release and ultimate failure, and cast in terms of two explanatory models: multiple games and social network markets. We conclude that consumer co-creation is indeed complex, but in ways that relate to both emergent market expectations and the evolution of markets, not to the transcendence of markets.

Co-creative expertise : Auran Games and Fury - a case study

This article discusses the ways in which the relations among professional and non-professional participants in co-creative relations are being reconfigured as part of the shift from a closed industrial paradigm of expertise toward open and distributed expertise networks. This article draws on ethnographic consultancy research undertaken throughout 2007 with Auran Games, a Brisbane, Australia based games developer, to explore the co-creative relationships between professional developers and gamers. This research followed and informed Auran’s online community management and social networking strategies for Fury (http://unleashthefury.com), a massively multiplayer online game released in October 2007. This paper argues that these co-creative forms of expertise involve co-ordinating expertises through social-network markets.

Co-constructed interaction in a paired speaking test : the rater's perspective

The definition and operationalisation of interactional competence in speaking tests that entail co-construction of discourse is an area of language testing requiring further research. This article explores the reactions of four trained raters to paired candidates who oriented to asymmetric patterns of interaction in a discussion task. Through an analysis of candidate discourse combined with rater notes, stimulated verbal recalls, rater discussions and scores awarded for interactional effectiveness, the article examines the extent to which raters compensate or penalise candidates for their role in co-constructing asymmetric interactional patterns. The article argues that key features of the interaction are perceived by the raters as mutual achievements, and it further suggests that the awarding of shared scores for interactional competence is one way of acknowledging the inherently co-constructed nature of interaction in a paired speaking test.

In the mouth of the imagination : positioning children as co-researchers and co-artists to create a professional children's theatre production

In recent decades a number of Australian artists and teacher/artists have given serious attention to the creation of performance forms and performance engagement models that respect children’s intelligence, engage with themes of relevance, avoid the cliche´s of children’s theatre whilst connecting both sincerely and playfully with current understandings of the way in which young children develop and engage with the world. Historically a majority of performing arts companies touring Australian schools or companies seeking schools to view a performance in a dedicated performance venue engage with their audiences in what can be called a ‘drop-in drop-out’ model. A six-month practice-led research project (The Tashi Project) which challenged the tenets of the ‘drop-in drop-out’ model has been recently undertaken by Sandra Gattenhof and Mark Radvan in conjunction with early childhood students from three Brisbane primary school classrooms who were positioned as co-researchers and co-artists. The children, researchers and performers worked in a complimentary relationship in both the artistic process and the development of product.

Non-adversarial advocates and gatekeepers : lawyers, FDR practitioners and co-operative post-separation parenting

The compulsory dispute resolution requirements in family law parenting cases create new roles and obligations for both lawyers and family dispute resolution (FDR) practitioners. This article will discuss how the legislative provisions impact on both sets of professionals in practice. It will also highlight the increased non-adversarial role of lawyers and a new role for FDR practitioners as “gatekeepers” to family courts in cases requiring FDR certificates.

Learning through collaboration and co-production in the Singapore film industry : opportunities for development

Co-production and strategic partnerships may generate valuable learning opportunities for firms to access to the knowledge and expertise of their partners. Such sharing and transfer of knowledge has become an increasingly common way for organising corporate finance and resources. However, not all collaborations result in a net positive experience for both partners. It can be a zero-sum game in which the partner learning the fastest dominates the relationship. In some cases, failure to gain access to partner knowledge results in unequal benefits accruing from such alliances. By examining the Singapore film industry from a learning perspective and taking into account particular forms of alliances, the study contributes to our understanding of the potential benefit and challenges of coproduction as a strategy for development.