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  • University of New South Wales
  • Macquarie University
  • The University of Sydney
  • University of Technology Sydney
  • Australian National University
  • The University of Melbourne
  • Capital Markets
  • Sirca
  • Commonwealth Bank
  • KPMG
  • King & Wood Mallesons
  • Macquarie
  • Australian Government - Treasury
  • New South Wales Goverment
 
 
 
 

Research Projects - All Projects

CIFR funds new, innovative and multi-disciplinary research, this is a list of all of our currently funded projects.

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An individual’s decision to save seems to be private, but the repercussions of insufficient savings at retirement are felt throughout the economy as individuals without sufficient savings need to rely on the public purse through a social safety net that provides income in old age. The existing suppor...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

How to best structure a default investment option in an accumulation fund is a pressing question around the world, as retirement savings systems shift to defined contribution schemes and mandatory or automatic enrolment is implemented. In Australia, most superannuation funds ha...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

The Global Financial Crisis serves as a timely reminder of the substantial risks associated with investing in financial markets and the importance of adequately controlling exposures to large negative returns (tail risk). At the same time, there is an increasing recognition tha...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

According to the Federal Government, MySuper is “a new low cost and simple superannuation product” that will provide a “single diversified investment strategy, suitable for the vast majority of members who are in the default option.” As more and more MyS...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

The shape of default superannuation funds in Australia recently changed with the introduction of MySuper. The system is transitioning towards all default money being managed within a MySuper product by 1 July 2017. The development of MySuper has been occurring in conjunction with a raft of other regulatory...

Area of Interest:  Market and Regulatory Performance, Completed Projects
Project Team: Dr Geoff Warren
 

The study explores possible ways of encouraging greater RMB trade invoicing and, more broadly, a range of market and policy questions related to the development of RMB trade and investment flows between Australia and China. The study includes both international and Australian aspects, with inputs from acad...

Area of Interest:  Financial Market Developments, Completed Projects
 

Safe-haven or safe assets underpin the international monetary system by serving as liquid and stable collateral for financial transactions. Since World War II, the US dollar and US Treasury bills have fulfilled the role of safe assets in the world economy. Any detraction from the status of these assets wou...

Area of Interest:  Financial Market Developments, Completed Projects
 

Australia introduced a statutory-backed continuous disclosure policy (CDP) in 1994 to help bolster the Australian Securities Exchange (ASX) in policing its continuous disclosure rules. However, statutory-backed continuous disclosure may be problematic for managers of innovative or high-growth firms. This i...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

The Australia in the Asian Century White Paper emphasised the expertise of Australian financial organisations, and concluded that those with a presence in Asia were well-positionedto capitalise on increasing investment, interregional trade flows and new financial markets emerging through the benefits of te...

Area of Interest:  Market and Regulatory Performance, Completed Projects
Project Team: Ms Deborah Healey
 

Transparency and high quality disclosure underpin investor confidence, assisting capital formation and stock liquidity. Achieving this is a significant challenge for businesses characterised by high information uncertainties and/or information asymmetries between stakeholders (e.g., in innovation industrie...

Area of Interest:  Market and Regulatory Performance
 

Self-managed superannuation funds (SMSFs) currently manage about one third of total superannuation assets (approximately $500B.). Further, the growth in SMSFs in recent years has been exceptional. SMSFs are important at the microeconomic level, because of their impact on the retirement income of the member...

Area of Interest:  Market and Regulatory Performance
 

Highly speculative trades on the part of key decision makers resulted in large losses and institutional collapses during the GFC. These collapses and the ensuing chaos also harmed depositors, taxpayers, and deposit-insurance schemes such as the FDIC. In the wake of these events, the question arises as to h...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

In many developing countries, rural residents require two or more days to get to a bank branch. Moreover, their journey may be wasted, because up to 45 % of government payments can go missing.  The delivery of financial services over a mobile phone means that the person ca...

Area of Interest:  Financial Market Developments, Completed Projects
 

There has been significant growth in international banks' foreign claims, which reached a peak of 34 trillion dollars in 2007, before the Global Financial Crisis. The extent of this growth showed the increased importance of international bank lending as a source of financin...

Area of Interest:  Financial Market Developments, Completed Projects
 

The GFC of 2008 prompted calls for a better understanding of financial market vulnerabilities, and the inherent risks within the system. The complexity of relationships between financial entities may be illustrated using the concept of a network. Furthermore, the multiple linkage points within a network ma...

Area of Interest:  Systemic Risk, Completed Projects
 

The onset of the global financial crisis (GFC) in 2008 prompted a funding cost shock to the Australian banking system. Banks use a mix of wholesale and deposit funds to finance lending. If a country is a net importer of wholesale funds, then a financial crisis in a foreign country can ‘infect’...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

Two critical issues emerging from the recent financial crisis are the importance of systemic risk and links between the financial sector and the real economy. Detecting and measuring systemic risk presents significant problems for regulators and policymakers.

 

The research aimed t...

Area of Interest:  Systemic Risk, Completed Projects
 

The introduction of the compulsory Superannuation Guarantee Contribution and favourable tax incentives has facilitated a rapid increase in pension savings in Australia. Australia now has the world’s fourth biggest pension fund market, with total assets in excess of $1.83 trillion, which is the equiva...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

The project seeks to provide ASIC with evidence based research on the impact of proposed market structure changes. It entails providing joint responses on behalf of CIFR and CMCRC to all requests for comment by ASIC on proposed market structure changes with independent, evidenced based comment on how the c...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

Accounting standards for the impairment of assets require managers to make a series of judgments and decisions when determining an asset’s recoverability, including estimating its future cash flows. It has been a concern for regulators in Australia and internationally that the various estimations req...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

No jurisdiction has undertaken the sort of fundamental rethinking of regulation in response to the GFC that the largest crisis since 1929 should have provoked, and that the crisis of 1929 did provoke.  The reasons for this are many, but owe much to the exceptional complexi...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

The global financial crisis (GFC) challenged a central assumption concerning the market’s efficiency, rationality and ability to self-regulate that had underpinned prior financial law. It has been said that the intellectual origins of the global financial crisis (GFC) can be traced back to “bli...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

The Basel II and III accords require the public disclosure of bank regulatory information under the Pillar 3, or market discipline, framework on a semi-annual basis. The new information details bank risk exposures and management strategies, capital adequacy and remuneration practices to enhance market disc...

Area of Interest:  Financial Market Developments, Completed Projects
 

The ASX has relaxed one of its Listing Rules, allowing small cap companies to increase the amount of share capital they can issue at a discount. Historically, the ASX rules allowed all listed companies to make non-pro-rata issues of up to 15 per cent of their shares at a price discount of up to 15 per cent...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

This project analyses (i) the risk of loan portfolios for authorised deposit-taking institutions (ADIs) and lenders’ mortgage insurers (LMIs); (ii) financial institution capital requirements and reserves; (iii) risks of asset-backed securities and covered bonds; and (iv) implications on regulations i...

Area of Interest:  Systemic Risk
 

The growing size and significance of investments by Sovereign Wealth Funds (SWFs) and State-Owned Enterprises (SOEs) impact on the dynamics of markets across the world. Specifically in Australia, Chinese investment into the country represents a national strategic issue given th...

Area of Interest:  Financial Market Developments, Completed Projects
 

As the pendulum swings towards regulation from laissez-faire in the aftermath of the Global Financial Crisis (GFC), there is no more pressing question than how the benefits of regulation (prevention/containment of financial disruptions) compare with the potential harm done to the economy if regulation caus...

Area of Interest:  Market and Regulatory Performance
 

The role of accounting standards in financial reporting is well understood. However, recent years have seen a marked rise in the frequency with which firms prominently report financial performance metrics (“non GAAP” metrics) such as “underlying profit”, “cash profit”, &...

Area of Interest:  Financial Market Developments
 

Despite much discussion about financial integration in Asia, it is not clear what financial integration means or how to measure it. There is little evidence as to the benefits and costs for participants.

 

The project aims to:

  • Develop...
Area of Interest:  Financial Market Developments, Completed Projects
 

Short-form disclosure documents emerged to address widespread concerns regarding the effectiveness of the conventional approach to disclosure in providing consumer protection. The requirement to provide investors with all the information they need in order to make an informed i...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

Institutional investment in Australia is highly innovative and complex. The regulatory focus – and associated literature on institutional investment has been on the sell-side. Considerably less attention has been paid to the buy-side, that is to the institutional investor...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

Stock exchange mergers are not a new phenomenon. Domestic and regional exchanges have been consolidating for decades. However, the epochal merger in 2007 of the New York Stock Exchange with Paris-based Euronext, itself a consolidation of several European exchanges, was a game c...

Area of Interest:  Financial Market Developments, Completed Projects
 

The Global Financial Crisis and its fallout have tested the integrity and resilience of regulatory frameworks in respect of financial services. The relevance of the ‘twin peaks’ model for financial regulation, as pioneered in Australia, is becoming greater as an increasing number of jurisdictio...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

This is the first in-depth Australian study of the corporate governance implications of securities loans. It sought to:
• Evaluate the legal structure of securities loans and how they are regulated in Australia and other major financial markets;
• Examine the impact of securities lo...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

Current estimates predict that only 35% of Australians will be adequately funded in retirement. Factors such as the aging population, increasing life-expectancy rates, rising living costs, and the inadequacy of many superannuation balances strongly suggest the need for working Australians to actively manag...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

The 2008 Global Financial Crisis (GFC) originated in the US, and promptly spread throughout the world. Although much has been written about the price performance of the financial markets during this period, the driving factors behind the markets’ gyrations have received less attention.

Prev...

Area of Interest:  Systemic Risk, Completed Projects
 

Asian banks navigated the 2008 GFC relatively successfully. Nevertheless, the sovereign debt crisis in Europe, and the consequent withdrawal of funds from the Asian markets, highlighted the importance of having resilient regional and national financial markets in Asia.


This study examines...

Area of Interest:  Financial Market Developments, Completed Projects
 

The funds, entities and regulators in the Australian superannuation industry comprise a system that is complex and dynamic. The differentiation between roles and the distribution of responsibility amongst a large number of entities provides the system with a measure of resilience against the local failure...

Area of Interest:  Systemic Risk, Completed Projects
 

Accurate and timely estimates of the state of the economy and systemic risks are of crucial importance for business, financial, regulatory and macroeconomic policy decision makers, who typically have to act in real time. However, difficulties arise in observing the large amount of contributing variables th...

Area of Interest:  Systemic Risk, Completed Projects, Completed Projects
 

As recent financial market failures have highlighted, financial institutions’ risk policies and practices can have far-reaching effects.


The research aimed to:

(i) Produce a model t...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

The aim of this project is to review how financial advice is regulated in leading common law countries, with a view to identifying measures that could benefit Australian legislation. The project team produced five working papers, which shed light on agency problems affecting funds management and financial...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

This project is the first documented attempt to use micro data to scientifically evaluate how changes in foreign banks’ lending behaviour during the 2007-2009 GFC impacted credit stability and the real economy in the Asian region. The study examined the roles played by two channels of shock transmiss...

Area of Interest:  Systemic Risk, Completed Projects
 

The Financial System Inquiry identified the international competitiveness of Australia’s financial services sector as a high priority for policy makers given profound changes in Asia. Yet how the sector is defined, and the measures for competitiveness, are poorly understood.


The res...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

Systemic stability has supported economic growth in Australia over recent decades. The Australian financial industry is a fundamental pillar of the national economy, and is hence reliant on the welfare of the banking system. Australian financial institutions weathered the global financial crisis (GFC) rela...

Area of Interest:  Financial Market Developments, Completed Projects
 

Global equities are an important asset class, comprising around one quarter of the portfolios of Australian default superannuation funds – nearly the same magnitude as domestic equities. However, comparatively less attention is given to global equities, possibly due to an informational ‘home bi...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

This project adds to the policy debate over the efficacy of the dividend imputation system, which was raised by the Financial System Inquiry and the Tax Discussion Paper.

 

The research:

(i) Examines the financial implications of the imputation system, addressing its...

Area of Interest:  Market and Regulatory Performance, Completed Projects
 

Numerous academic and regulatory studies find that algorithmic traders (ATs) and high-frequency traders (HFTs) have a beneficial market impact in terms of contributing to a narrowing in bid-ask spreads and improving price discovery. However, many institutional investors contend that finding liquidity for l...

Area of Interest:  Market and Regulatory Performance, Completed Projects
Project Team: Dr Talis Putnins
 

The significance and magnitude of superannuation funds in Australia has seen their governance arrangements subject to considerable scrutiny in recent years. A series of government inquiries have made recommendations with a view to changing current governance arrangements, including proposing to increase th...

Area of Interest:  Market and Regulatory Performance, Systemic Risk, Completed Projects
 

Australia’s ‘two strikes’ rule empowers shareholders to vote on a board spill if the compensation report of a public company receives 25% or more dissenting votes for two consecutive years. ‘Say on pay’ legislation has been introduced in several countries but Australia’s...

Area of Interest:  Market and Regulatory Performance
 

The aim of the project is to document and analyse the quality and regulatory compliance of the annual financial reports of private companies lodging annually with ASIC.

 

Planned project outcomes:

  1. 1. Analyses that will inform the future regulation (de-regulation)...
Area of Interest:  Market and Regulatory Performance
 

This research examines the decision to bring in-house the management of investments, as compared to the alternative of exclusively out-sourcing to external investment managers – a trend that is currently evident for Australian superannuation funds., The lack of consistency in views and approach acros...

Area of Interest:  Market and Regulatory Performance, Completed Projects