Liability-driven investment in longevity risk management

This paper studies optimal investment from the point of view of an investor with longevity-linked liabilities. The relevant optimization problems rarely are analytically tractable, but we are able to show numerically that liability driven investment can significantly outperform common strategies that do not take the liabilities into account. In problems without liabilities the advantage disappears, which suggests that the superiority of the proposed strategies is indeed based on connections between liabilities and asset returns

Guidelines for Identifying Business Risks and Opportunities Arising From Ecosystem Change

Outlines the Corporate Ecosystem Services Review, a methodology to help businesses develop strategies for managing operational, regulatory, reputational, market, and financing risks and opportunities arising from their dependence and impact on ecosystems

Inward foreign direct investment and constitutional change in Scotland

Purpose - To undertake an analysis of the implications of potential Scottish independence for inward foreign direct investment (FDI), multinational enterprise strategies, and the local economy.<p></p> Design/methodology/approach - Takes a multidisciplinary approach drawing upon literature and evidence in the international business and management, political economy, and economic geography fields to analyze the role and impact of inward FDI in Scotland following possible Scottish independence.<p></p> Findings - Scotland continues as an attractive location for FDI, with greater diversity than hitherto. While the country’s comparative advantages in immobile natural resources provide some protection from uncertainty, weak embeddedness is a risk factor irrespective of independence. A range of transition costs of independence are identified, which could be high and of indeterminate duration, and some will be sector-specific. There are also new possibilities for tailoring of policies, and potential reindustrialization opportunities in renewable technologies. The foreign investors most vulnerable to political risks and uncertainties are those whose market scope is the rest of the UK (rUK) either as exporters or value chain integrators, in addition to the high political risk industries of energy, banking, and financial services and defence. Scottish subsidiaries’ significance within their parent MNE groups will also be a major factor in determining responses to political risks and uncertainties.<p></p> Originality/value - Specific focus upon the impact of potential independence on the foreign-owned sector as a major contributor to the Scottish economy.<p></p&gt

Sharpening the Cutting Edge: Corporate Action for a Strong, Low-Carbon Economy

Outlines lessons learned from early efforts to create a low-carbon economy, current and emerging best practices, and next steps, including climate change metrics, greenhouse gas reporting, effective climate policy, and long-term investment choices

Is corporate Asia ready for the green economy?

This report explores the concept of a ‘green economy’, and its relevance in Asia. It explores the roles that policymakers, investors, corporates and accountants need to play to facilitate the transition to a green economy.Publisher PD

Rationales for corporate risk management from stakeholders’ perspective

The rationales for corporate risk management are examined from the point of view of the theory of finance and of key stakeholder groups’ interests. A study of the use of hedging instruments in 161 Polish non-financial listed companies is then presented. The study is based on keyword analysis of financial statements; parametric tests and logit regression are used to determine relationships between the hedging decision and financial standing of companies. However, company size is proved to be the only significant factor for a hedging decision. The implications of these findings and new research questions are discussed in the conclusion.stakeholder theory; risk management; hedging; derivatives

Foreign Ownership of U.S. Financial Assets: Implications of a Withdrawal

This report provides an overview of the role foreign investment plays in the U.S. economy and an assessment of possible actions a foreign investor or a group of foreign investors might choose to take to liquidate their investments in the United States. Concerns over the potential impact of disinvestment have grown as national governments have become more active investors in the U.S. economy and as innovation in creating financial instruments has increased volatility in financial markets. Such concerns seem out of step with the experience of the 2008-2009 financial crisis, during which the dollar became the preferred safe haven investment for foreign investors. If some foreign investors were to liquidate their holdings, these actions could affect the U.S. economy in a number of ways due to the role foreign investment plays in the United States and due to the current mix of economic policies the United States has chosen. The impact of any such action on the economy would also depend on the overall condition and performance of the economy and the financial markets. If the economy were experiencing a strong rate of economic growth, the impact of a foreign withdrawal likely would be minimal, especially given the dynamic nature of credit markets. If a withdrawal occurred when the economy was not experiencing a robust rate of growth or if credit financial markets were under duress, the withdrawal could have a stronger effect on economic activity. The particular course of action foreign investors might choose to take and the overall strength and performance of the economy at the time of their actions could affect the economy in different ways. Congress likely would become involved as a result of its direct role in making economic policy and its oversight role over the Federal Reserve. In addition, the actions of foreign investors could complicate domestic economic policymaking. Foreign investors who decide to liquidate their holdings of one particular type of investment would normally need to look for other types of assets to acquire. While there are a multitude of possible strategies foreign investors could pursue, this analysis assesses the impact of four of the most likely strategies a single large foreign investor or a group of foreign investors could choose to employ to reduce or withdraw entirely their holdings of U.S. financial assets: • A rapid liquidation of U.S. Treasury securities. • A shift in the makeup of foreign investors’ portfolios among various dollar- denominated assets. • A rapid shift from dollar-denominated assets to assets denominated in other currencies. • A slow shift in the makeup of future accumulations of assets away from dollar- denominated assets to assets denominated in currencies other than the dollar

Social exclusion and economic growth at the European Union: can social marketing and behavioral economics help us to overcome the problem?

The problem of poverty and social exclusion is growing nowadays in the European Union context, according to Eurostat (2015 and 2016). And, in spite of the fact that Europe 2020 Strategy is apparently focused on that situation, the perspectives are not promising. What could be happening? In this paper we analyze this issue from a Macromarketing approach, including elements from Behavioral Economics (stigmatization process and stress coping theories, going further than the “homo economicus” traditional model) to reach a better understanding, and recommending a combined public-private response to overcome the problem, using the elements that Marketing provide us (such as Social Marketing, Macro-social Marketing, Corporate Social Marketing and also traditional Commercial Marketing techniques, under a “fortune at the bottom of the pyramid” approach). Doing so, we do not only want to eradicate this sort of curse, but also to boost economic growth in an effective inclusive manner.Universidad de Málaga. Campus de Excelencia Internacional Andalucía Tech