Improving retirement adequacy through asset class prioritization

Highly risk-averse retirees are generally advised to adopt a fixed spending strategy such as the 4% withdrawal rule. To prevent the premature depletion of a retirement portfolio, the rule attempts to proxy as the ‘safe withdrawal rate’. But a constant withdrawal rate means that retirees accumulate unspent surpluses when markets outperform and face spending shortfalls when markets underperform. While a safe withdrawal rate can prevent spending shortfalls, the opportunity cost of unspent surpluses associated with this strategy can be extreme. We apply a range of basic investment decision rules to a retirement portfolio applying various withdrawal rates and examine the probability of shortfalls over a retirement horizon. Using a block bootstrap simulation technique, we examine decision rules relating to stock and bond investments. Our results show that retirement portfolios with a bias towards stocks coupled with a decision rule that sources withdrawals from bonds and cash before stocks significantly outperforms alternative withdrawal strategies, despite the inherent increase in volatility. This finding is in direct contrast to the safe withdrawal rate conventions used in contemporary financial advice models.     

The walrus, carpenter and oysters: Liberal reform, hypocrisy and expertocracy in Maori land loss in New Zealand 1885–1911

This paper considers the Liberal Governments’ reformist agenda and resultant hypocrisy surrounding wealth confiscation from Maori in New Zealand from 1885 to 1911. Through an analysis of official records, ledger accounts and other historical documents, it shows how the government compulsorily acquired land from Maori and resold it at considerable profit, thus supplying a means of increasing state revenues. Supplementing these revenues were exorbitant survey fees, government commissions from Native Reserves and local government rates in which accounting expertise made it possible to enclose, price and levy charges. The calculative process enabled parliamentarians to argue that given the poor returns to Maori, their assets should be put into the hands of land-selling councils. Maintaining a figurative distance from the mechanism of exploitation, all the while responsible for its enactment, successive Liberal administrations throughout the period made much of past injustices and expressed considerable sympathy for Maori. Maori were largely dispossessed of their land by the end of this period—a period of relative calm where public appeasement and niceties presented a more benign façade to the disproportionately heavy taxation burden on, and ultimate pillage of Maori.     

Risk factors in Australian bond returns

This study examines the risk factors in Australian bond returns. The study quantifies bond liquidity and estimates a liquidity risk factor in the Australian setting. We develop a three‐factor asset pricing framework that uses term, default and liquidity risk factors to explain the variation of Australian bond returns. Our findings corroborate the US evidence on the pervasiveness of these risk factors faced by bond investors. The three‐factor model developed in this study has practical applications when calculating the cost of debt, evaluating the performance of an active bond fund manager and hedging underlying risk in a bond portfolio.     

What Do Central Banks Know about Inflation Factors?

We offer a novel methodology for assessing the quality of central bank monetary policy reports. We evaluate their economic content by comparing verbally reported inflation factors with factors identified from a simple new Keynesian model. Positive correlations indicate that the reported inflation factors were similar to the model-identified ones, marking high-quality inflation reports. Although sample bank reports on average identified inflation factors correctly, the degree of forward-looking reporting varied.     

The price effects of cross‐market mergers: theory and evidence from the hospital industry

We consider the effect of mergers between firms whose products are not viewed as direct substitutes for the same good or service, but are bundled by a common intermediary. Focusing on hospital mergers across distinct geographic markets, we show that such combinations can reduce competition among merging hospitals for inclusion in insurers' networks, leading to higher prices (or lower‐quality care). Using data on hospital mergers from 1996–2012, we find support that this mechanism operates within state boundaries: cross‐market, within‐state hospital mergers yield price increases of 7%–9 % for acquiring hospitals, whereas out‐of‐state acquisitions do not yield significant increases.     

The Effects of Offering Health Plan Choice Within Employment-Based Purchasing Groups

Employers may offer employees a choice of health plans either to promote competition among plans or to better cater to employee preferences for different types of products. This article examines whether the relationship between the availability of choice and insurance costs and coverage are consistent with these models of employer behavior. The results indicate that employers who offer choice have lower average premiums, primarily because employees are enrolled in less generous plans, and cover a greater proportion of workers than those who do not. The results are consistent with employers offering choice to accommodate diverse worker preferences.     

Enabling or “real” power and influence in leadership

On the theme of personal development, this conceptual article aims to provoke thought about power and influence in leadership by means of a short excursion into character depictions in J.R.R. Tolkien's The Lord of the Rings ( 1966 ). It is said of mythopoeic literature, the genre of Tolkien's work, that the very simplicity of the lens “pares away distractions,” “opens the way to unexpected connections, … [and] draws attention to alternative modes of being and thinking” (Greene, 1994 , p. 457). Taking the liberty of perceived applicability of Tolkien's literary genius to motifs on leadership, this article provokes thinking on what constitutes “real” power and influence in leadership. It is contended that demonstrating real power and influence in leadership lies not in coercive tactics of wielding power over others but in withholding usurping power to work with and enable others to achieve worthwhile ends. Three suggested markers of enabling or real power and influence in leadership are explored. Each one contains an element of paradox. The proposed markers suggest, in turn, that enabling or real power and influence does not usurp but serves, that it sublimates self‐interest for the interests of others and the intended goal, and that it positions for growth for the self and others and fosters true engagement in leadership. The article offers some empirical evidence as to the efficacy of the proposed markers for effective leadership and suggests a further research strategy to test the proposed markers empirically.     

From clear to complicated: Buying and selling accounting services post Sarbanes-Oxley

While much has been said and written about the effect of the 2002 Sarbanes-Oxley Act (SOX), one consequence of the new regulation that has been largely neglected is the law's dramatic impact on how audits are bought and sold in the United States. Prior to SOX, the process was clear and simple: accounting firm partners would meet with the publicly held client company's C-level executives to complete the exchange. When SOX was passed, Congress took the buying decision out of the hands of the client company's executives and placed it in the hands of the company's external audit committee. As this inter-disciplinary research will explain, this change—and other similar changes emanating from the “independence” provisions in SOX—has forever complicated the client-auditor exchange. Based on the literature in business-to-business selling, this research proposes two models—one centered around the concept of a “buying center” and another around “selling team” theory—in an effort to advance thinking in this area, and help both client companies and accounting firms operate in this new environment.     

‘It Doesn't Matter How Big or Small You Are…There's a Position For You’: Body Image Among Female Tackle Football Players

The purpose of this study was explore the body image experiences of women who play tackle football. Data included semi-structured interviews with 15 players on a women's tackle football team in Western Canada. Data were analyzed thematically and objectification theory was used to interpret the findings. Themes that emerged included: a) improved body image through physical change, appreciation of function over appearance and shifting ideals of beauty; b) importance of a social atmosphere that celebrated diverse bodies; and c) negotiation of body image on and off the field. Research has documented a connection between body image and physically active leisure, but much about the nature of the relationship is still unclear. The findings of this study provide insight into elements of physically active leisure (e.g., social atmosphere or nature of the activity) which can be used to promote positive body image, health, and wellness in leisure settings.     

From vulnerability to transformation: a framework for assessing the vulnerability and resilience of tourism destinations

Tourism is a key driver of global socio-economic progress. However, its sustainability is at risk from multiple shocks and hazards that threaten livelihoods. Surprisingly little is known about the complex drivers of destination vulnerability, leading to the creation and application of ineffective resilience-building solutions. The paper presents the Destination Sustainability Framework (DSF) designed to assess destination vulnerability and resilience, and support successful resilience-building initiatives. Holistic in nature, the DSF comprises: (1) the shock(s) or stressor(s); (2) the interconnected dimensions of vulnerability – exposure, sensitivity, and system adaptiveness; (3) the dynamic feedback loops that express the multiple outcomes of actions taken (or not); (4) the contextualised root causes that shape destinations and their characteristics; (5) the various spatial scales; and (6) multiple timeframes within which social-ecological change occurs. This innovative framework is significant because it's the first framework to chart the complex manifestation of vulnerability and resilience in tourism destinations. Further, it brings tourism sustainability research in line with wider debates on achieving sustainability within the dynamic coupled human–environment system, doing so through the inclusion of insights from contemporary systems approaches, including chaos–complexity theory, vulnerability approaches, sustainability science, resilience thinking, along with the geographies of scale, place and time.