Encouraging Social Innovation Through Capital: Using Technology to Address Barriers

Outlines how technology can help foster a robust capital market for public education innovation by improving content, linking technology with face-to-face networks, and streamlining transactions. Suggests steps for government, foundations, and developers

Can we trust financial analysts? Reliability of stock recommendations and firm-specific characteristics

We examine the reliability of analysts’ stock recommendations issued for Italian listed firms by exploring absolute stock returns. Research findings reveal that absolute stock returns following recommendations differ depending on whether they are positive, neutral or negative recommendations, but slightly more than fifty percent of recommendations are confirmed by absolute stock returns. On the basis of the logistic regression model, we also document that the reliability of stock recommendations is inversely connected to the uncertainty faced by investors who hold stocks in a specific firm, as suggested by the estimate of explanatory variables, such as the firm’s beta, the interest coverage ratio and cash flow volatilit

Online Brokers and the SEC: Still Working Out the Glitches

Common sense dictates that some customers of an on-line brokerage service are bound to have some of the same difficulties in conducting business but that does not mean all customers or even many customers had the same problems. In addition, as to customers who may have had problems executing buy and/or sell orders, there are many variables regarding the circumstances and conditions for each customer\u27s transaction. Variables such as, but not limited to, account status, time of order, i.e., time of day and day of the week, and the customer\u27s computer modem capabilities and internet service provider. Plaintiffs fail to allege sufficient evidence that this claim is typical of the proposed class under like or similar circumstances

Beyond Risk Profiling: Achieving better investment outcomes for consumers and industry

In the wake of the Retail Distribution Review, there remain fundamental questions about how best to support consumers to make sound investment decisions, particularly those with modest amounts of money to invest, for whom a poor investment decision may have a disproportionate adverse impact. The advent of new pension freedoms from April 2015, which give people more choice and flexibility about how they use their retirement savings, adds further impetus to the issue. To help inform policy and practice on this important subject, in June 2015 we brought together consumer and industry experts to explore possible new approaches to improve risk profiling and investment decision-making

Company law reform in Germany

The paper was submitted to the conference on company law reform at the University of Cambridge, July 4th, 2002. Since the introduction of corporation laws in the individual German states during the first half of the 19th century, Germany has repeatedly amended and reformed its company law. Such reforms and amendments were prompted in part by stock exchange fraud and the collapse of large corporations, but also by a routine adjustment of law to changing commercial and societal conditions. During the last ten years, a series of significant changes to German company law led one commentator to speak from a "company law in permanent reform". Two years ago, the German Federal Chancellor established a Regierungskommission Corporate Governance ("Government Commission on Corporate Governance") and instructed it to examine the German Corporate Governance system and German company law as a whole, and formulate recommendations for reform

Investing in Montenegro: Limits and Opportunties

Over the past few decades international flow of capital has contributed to the “globalisation” phenomena. Some countries took advantage of this, managing to develop their economies and to improve the standard of living of their citizens by attracting foreign investments. Others were not so successful. Countries of the South-Eastern Europe, hit by Balkan wars and economic sanctions, were late to be included in the first wave of international capital flow. But now, when the whole region tries to join the accession process to the European Union, foreign investments are more important then ever. This paper examines one such country – Montenegro, which suffered for almost two decades, isolated by economic sanctions and hit by the consequences of the Balkan wars. Montenegro is a part of the State Union of Serbia and Montenegro and it undertook extensive economic and social changes in order to fulfil the conditions for accession into the European Union. This paper presents general information for foreign investors interested in this part of Europe and describes specific benefits and risks that they may face during the process. There are many possibilities that can be exploited by educated investors not afraid to invest their capital in MontenegroInternational flow of capital, foreign investments, Montenegro, accession, foreign investors

Financial system inquiry: final report

Executive summary This report responds to the objective in the Inquiry’s Terms of Reference to best position Australia’s financial system to meet Australia’s evolving needs and support economic growth. It offers a blueprint for an efficient and resilient financial system over the next 10 to 20 years, characterised by the fair treatment of users.   The Inquiry has made 44 recommendations relating to the Australian financial system. These recommendations reflect the Inquiry’s judgement and are based on evidence received by the Inquiry. The Inquiry’s test has been one of public interest: the interests of individuals, businesses, the economy, taxpayers and Government.   Australia’s financial system has performed well since the Wallis Inquiry and has many strong characteristics. It also has a number of weaknesses: taxation and regulatory settings distort the flow of funding to the real economy; it remains susceptible to financial shocks; superannuation is not delivering retirement incomes efficiently; unfair consumer outcomes remain prevalent; and policy settings do not focus on the benefits of competition and innovation. As a result, the system is prone to calls for more regulation.   To put these issues in context, the Overview first deals with the characteristics of Australia’s economy. It then describes the characteristics of and prerequisites for a well-functioning financial system and the Inquiry’s philosophy of financial regulation.   The Inquiry focuses on seven themes in this report (summarised in Guide to the Financial System Inquiry Final Report).   The Overview deals with the general themes of funding the Australian economy and competition.   The Inquiry has also made recommendations on five specific themes, which comprise the next chapters of this report: Strengthen the economy by making the financial system more resilient. Lift the value of the superannuation system and retirement incomes. Drive economic growth and productivity through settings that promote innovation. Enhance confidence and trust by creating an environment in which financial firms treat customers fairly. Enhance regulator independence and accountability and minimise the need for future regulation. These recommendations seek to improve efficiency, resilience and fair treatment in the Australian financial system, allowing it to achieve its potential in supporting economic growth and enhancing standards of living for current and future generations.   Financial system inquiry committee   Mr David Murray AO (Chair) Mr David Murray AO (Sydney) was most recently the inaugural Chairman of the Australian Government’s Future Fund Board of Guardians between 2006 and 2012. Mr Murray was previously the Chief Executive Officer of the Commonwealth Bank of Australia between 1992 and 2005. In this time, Mr. Murray oversaw the transformation of the Commonwealth Bank from a partly privatised bank to an integrated financial services company. In 2001, he was awarded the Centenary Medal for service to Australian society in banking and corporate governance, and in 2007 he was made an Officer of the Order of Australia for his service to the finance sector, both domestically and globally, and service to the community.   Professor Kevin Davis Professor Kevin Davis (Melbourne) is currently a Professor of Finance at the University of Melbourne, Research Director at the Australian Centre for Financial Studies and a Professor of Finance at Monash University. Professor Davis is also a part-time member of the Australian Competition Tribunal and Co-Chair of the Australia–New Zealand Shadow Financial Regulatory Committee.   Mr Craig Dunn Mr Craig Dunn (Sydney) was most recently Chief Executive Officer and Managing Director of AMP. Mr Dunn led AMP through the global financial crisis and has extensive experience in the financial sector. He was a member of the Australian Government\u27s Financial Sector Advisory Council and the Australian Financial Centre Forum, and an executive member of the Australia Japan Business Co-operation Committee. Mr Dunn is a director of the Australian Government’s Financial Literacy Board.   Ms Carolyn Hewson AO Ms Carolyn Hewson AO (Adelaide) served as an investment banker at Schroders Australia for 15 years. Ms Hewson has over 30 years’ experience in the finance sector and currently serves on the boards of BHP Billiton Ltd and Stockland. Ms Hewson was made an Officer of the Order of Australia for her services to the YWCA and to business. Ms Hewson has served on both the boards of Westpac and AMP and retired from the board of BT Investment Management Ltd and as the Chair of the Westpac Foundation upon her appointment to the Financial System Inquiry Committee.   Dr Brian McNamee AO Dr Brian McNamee AO (Melbourne) served as the Chief Executive Officer and Managing Director of CSL Limited from 1990 to 30 June 2013. During that time, CSL transitioned from a Government-owned enterprise to a global company with a market capitalisation of approximately $30 billion. He has extensive experience in the biotech and global healthcare industries. Dr McNamee was made an Officer of the Order of Australia for his service to business and commerce. &nbsp

Information Content of Equity Analyst Reports

This paper investigates the market reaction to the information released in security analyst reports. It shows that the market reacts significantly and positively to changes in recommendation levels, earnings forecasts, and price targets. While changes in price targets and earnings forecasts both provide information to the market, revisions in price targets have a larger and more significant impact than comparable revisions in earnings forecasts. The text of the report is also a significant source of information as it provides the justifications supporting an analyst's summary opinion. When all of this information is considered simultaneously, some of it, notably the earnings forecasts, is subsumed. The results further show that analysts correctly predict price targets slightly over 50% of the time. Finally, the valuation methodology used does not seem to be correlated with either the market's reaction or the analyst's accuracy.

Living Innovation Laboratory Model Design and Implementation

Living Innovation Laboratory (LIL) is an open and recyclable way for multidisciplinary researchers to remote control resources and co-develop user centered projects. In the past few years, there were several papers about LIL published and trying to discuss and define the model and architecture of LIL. People all acknowledge about the three characteristics of LIL: user centered, co-creation, and context aware, which make it distinguished from test platform and other innovation approaches. Its existing model consists of five phases: initialization, preparation, formation, development, and evaluation. Goal Net is a goal-oriented methodology to formularize a progress. In this thesis, Goal Net is adopted to subtract a detailed and systemic methodology for LIL. LIL Goal Net Model breaks the five phases of LIL into more detailed steps. Big data, crowd sourcing, crowd funding and crowd testing take place in suitable steps to realize UUI, MCC and PCA throughout the innovation process in LIL 2.0. It would become a guideline for any company or organization to develop a project in the form of an LIL 2.0 project. To prove the feasibility of LIL Goal Net Model, it was applied to two real cases. One project is a Kinect game and the other one is an Internet product. They were both transformed to LIL 2.0 successfully, based on LIL goal net based methodology. The two projects were evaluated by phenomenography, which was a qualitative research method to study human experiences and their relations in hope of finding the better way to improve human experiences. Through phenomenographic study, the positive evaluation results showed that the new generation of LIL had more advantages in terms of effectiveness and efficiency.Comment: This is a book draf