Relative Robust Portfolio Optimization with benchmark regret

We extend Relative Robust Portfolio Optimization models to allow portfolios to optimize their performance when considered relative to a set of benchmarks. We do this in a minimum volatility setting, where we model regret directly as the maximum difference between our volatility and that of a given benchmark. Portfolio managers are also given the option of computing regret as a proportion of the benchmark’s performance, which is more in line with market practice than other approaches suggested in the literature. Furthermore, we propose using regret as an extra constraint rather than as a brand new objective function, so practitioners can maintain their current framework. We also look into how such a triple optimization problem can be solved or at least approximated for a general class of objective functions and uncertainty and benchmark sets. Finally, we illustrate the benefits of this approach by examining its performance against other common methods in the literature in several equity markets.     

Regulation and financial disclosure: The impact of plain English

In October 1998, the SEC implemented a rule requiring firms to use plain English in their prospectus filings. In addition to the rule, the SEC encouraged the use of plain English in all filings and communication with shareholders. Did the SEC rule significantly impact managers’ disclosure style? And, more interestingly, did the SEC’s recommendations lead managers to change their disclosure style in filings not under the plain English mandate? Our textual analysis of Form 424, IPO prospectus, and 10-K filings over 1994–2009 finds that the SEC’s implementation of the plain English rule substantively impacted managerial behavior. When we focus on 10-K filings, we find that after the 1998 rule, firms are more likely to improve the stylistic components of their filing before an equity issuance and firms with better corporate governance policies are more likely to comply with the rule.     

ESTIMATION OF SYMMETRIC INPUT–OUTPUT TABLES: AN EXTENSION TO BOHLIN AND WIDELL

This paper presents two optimisation models for use in the production of symmetric input–output tables (SIOTs) based on data contained within supply-use tables (SUTs). The first model produces commodity-by-commodity SIOTs derived from the selection of appropriate technology assumptions, while the second produces industry-by-industry SIOTs derived through the selection of appropriate sales structure assumptions. Both models address the problem of negative coefficients and also permit the use of rectangular SUTs as base input data. Additionally, this paper explores the development of a ‘comprehensive model’ enabling production of both commodity-by-commodity and industry-by-industry SIOTs that are conceptually and mathematically consistent.     

Print media portrayals of giving: exploring national ‘cultures of philanthropy’

In their 2010 study drawing on 500 empirical philanthropy studies, Bekkers and Wiepking identified eight consistently significant giving mechanisms. The pilot study reported here extends what is known about one mechanism, values, as a giving driver, in particular considering how national cultural values apply to giving. Personal values are not formed in a vacuum. They are influenced by the wider culture and society: thus values have a socio-cultural dimension. Accordingly, this pilot research draws on media theory and cultural studies work on national ethos to explore how these national cultural values interact with giving. A directed qualitative content analysis has been undertaken to compare US and Australian print media coverage about philanthropy. The two nations share an Anglo–Saxon orientation but differ significantly in national character and philanthropic activity. This study posits that a nation's media coverage about giving will reflect its national cultural ethos. This coverage can also shape personal values, thus implications exist for theory about the antecedents of personal giving values. Wider national values may drive or stifle giving, so this wider view of values as a driver has implications also for philanthropy promotion and fundraising. Copyright © 2011 John Wiley & Sons, Ltd.     

The Economics of Ageing—What Do We Face?

We, as taxpayers, face challenging problems in assisting the well-being of old people mainly because preparing for and living through old age is a risky business. Through government, taxpayers can provide some insurance against the risks of old age, especially the risk of bad health and the risk of a long life. However, the ageing population suggests that maintaining this support will require increased taxation. This article quantifies this challenge for Australia and concludes that although increased taxation may be required it will be easily affordable from the much higher incomes generally received due to the secular increase in productivity.     

Business students’ experiences of technology tools and applications in higher education

There has been much debate about the increasing use of technology in all learning, training and development contexts. In the case of higher education, although technology may not have fundamentally changed teaching practices, students report how several technologies and applications help with their learning, research and collaborative activities. Through a survey of business students at an Irish university, this paper examines their expectations and experiences of faculty usage of technology tools and applications. Although, on the surface, the findings provide some degree of confidence that students’ expectations of technology usage are being met, students would, nonetheless, like to see faculty make even greater, and more effective, use of technology in the classroom. The study provides faculty with examples from students of technology usage that supports their learning and these examples may be useful for faculty when designing and delivering their courses. Beyond the higher education context, the research highlights some broader practical implications for training and development in a corporate setting.