Is Index Performance Achievable? An Analysis of Australian Equity Index Funds

This article examines the performance of index equity funds in Australia. Despite the significant growth in index funds since 1976, when the first index mutual fund was launched in the U.S., research on their performance is sparse in the U.S. and non-existent in Australia. This study documents the existence of significant tracking error for Australian index funds. For example, the magnitude of the difference between index fund returns and index returns averages between 7.4 and 22.3 basis points per month across index funds operating for more than five years. However, there is little evidence of bias in tracking error implying that these funds neither systematically outperform nor underperform their benchmark on a before cost basis. Further analysis provides evidence that the magnitude of tracking error is related to fund cash flows, market volatility, transaction costs and index replication strategies used by the manager.     

The growth of UK companies and their contribution to job generation, 1985–1987

Theories of firm growth are reviewed and various models examined. The firm growth and job generation process in the UK over the period 1985–87, is examined empirically, by using the very large data files of the Dun and Bradstreet credit rating organisation. In the analysis, four computer processes were carried out; the sorting and matching of files, the cleaning of the data, the validation of the cleaned data, and the scaling up the results. The final adjusted data were grossed-up to provide an overview of the growth and job generation potential of UK firms. This is compared with past results for the periods 1971–81, and 1982–84. Small firms performed well, providing 48% of all new jobs, although consisting of only 21% of all employment in 1985. The 1000+ employee range provided only 13% of all new jobs over the period, although consisting of 37% of all employment in 1985. An overall trend of positive performance in smaller firms, and negative in larger firms was apparent. The 20–49 employee cohort performed unusually poorly in firm and job creation, against the expected pattern. The effect of takeovers, mergers and rationalisations on employment was examined. As expected, there was negligible restructuring of small firms, but over 5% of employees in the largest 1000+ cohort were involved in some form of reorganisation.In this and the two previous studies for 1971–81 and 1982–84, we found a consistent pattern of small firms as net generators of jobs, and large firms as net losers. This overall net behaviour is essential for the overall stability of the population, and can not be seen in good or bad terms. Bolton in 1971 found that the UK had an unduly small and weak small-firm sector. That trend to concentration is being reversed.This research was supported by the Department of Employment, Small Firms Division.     

Time,congestion, and public goods

This paper considers intermediate and final public goods as stocks from which consumers obtain a flow of services by expending scarce time. The services so obtained depend on the time other individuals spend utilizing these same goods. Optimality conditions are derived for both stock levels and flow usage where tolls are required to cover costs. The elasticities in the resulting formulae are endogenous in the sense that only certain values are permissible. In the intermediate good case, at the optimum, the public good will always be locally optimally supplied and locally underutilized to a degree which depends on the congestion parameter.     

Institutional evolution as an emerging focus in scenario planning

In this paper, we argue that institutional evolution should occupy a center stage in scenario development. During the last two decades, strategy models have neglected the institutional milieu, partly because analytical approaches to link institutional milieus and business contexts were underdeveloped. However, theoretical developments in institutional economics accomplished during this time period make it possible to connect the consequences of institutional evolution to strategy development. Further, with the increasing globalization of commerce, and the attendant complexity and turbulence in institutional evolution, particularly in emerging economies, significant opportunities for strategy related action may reside not in product markets but in institutional arenas. Institution-focused scenarios are therefore increasingly needed. We outline the key linkages between the institutional milieu and business contexts and illustrate how scenarios incorporating institutional parameters can shed light on the strategy context in the case of emerging economies.     

How much does tax erode fund excess returns?

We model the tax drag from active fund management based on reported monthly holdings of active equity funds. Tax drag erodes 65 percent of the 0.74 percent excess return in Broad Market funds, but only 21 percent of the 1.80 percent excess return in Small-Cap funds for Australian superannuation (pension) fund investors. Tax drag varies with investment style; market state, which is most detrimental during bull markets; and fund turnover. For high-income individual investors, tax drag is exacerbated to the extent that active management only generates meaningful after-tax excess return for Small-Cap funds of certain styles.     

Beyond concern: socio-demographic and attitudinal influences on privacy and disclosure choices

ABSTRACT

The co-option of consumers as unwilling agents in their own surveillance has enabled significant abuses of consumer privacy. Previous studies have largely used privacy concern as a proxy for overall privacy attitudes. In this study, we implement a choice experiment in combination with measures adapted from Communication Privacy Management theory to enable a broader exploration of the influences of privacy attitudes by contextualising privacy as a negotiation about accessibility over contextual boundaries. Key findings suggest individuals’ social media disclosure decisions are influenced at least in part by their privacy attitudes, particularly with respect to information categories which may cue other personal information. Findings are also presented on consumers’ willingness to pay for privacy, with implications for alternative revenue streams not built on consumer surveillance.     

应客观看待中国因素对油价的影响

【美国《华尔街日报》6月9日】美国前总统布什（Gegrge W．Bush）的一位助手几年前曾说，“我们创造自己的现实”。拿这句话来形容华盛顿和北京目前对大宗商品市场的影响是再恰当不过了。     

Requests for zoo visitors to undertake pro-wildlife behaviour: How many is too many?

Recognising the potential conservation impact, zoos regularly ask their visitors to undertake pro-wildlife behaviour. This paper presents the results of two studies undertaken to address the question: how often during a visit should visitors be asked? Study 1 sought to a) determine individuals' personal thresholds and b) the point where the number of different behaviours requested began affect visitors' experiences. Study 2 sought the same, but focused on requests for the same behaviour. Results suggest that few respondents' personal thresholds were crossed (2.5% in Study 1 and 9% in Study 2). In neither study did many respondents (2.5% in Study 1 and 2.8% in Study 2) feel that the number of requests negatively affect their overall zoo experience. While there are caveats, we conclude that there appears little cause for concern about asking zoo visitors on multiple occasions to act in support of wildlife. Indeed, such requests may improve experiences.