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Amico: Corporate Governance Enforcement in the Middle East and North Africa

corporate-governance_2736-29

ABSTRACT: Corporate governance frameworks in the Middle East and North Africa region have undergone a substantial evolution in the past decade. Better enforcement of corporate governance rules and regulations has in the past three years emerged as both a policy challenge and a priority for

Balassone, Momigliano, Romanelli & Tommasino: Just Round the Corner? Pros, Cons, and Implementation Issues of a Fiscal Union for the Euro Area

Flag_of_Europe

ABSTRACT: The experience of other successful monetary unions and economic theory suggest that the euro area would benefit from the establishment of a supranational fiscal capacity (a fiscal union), to buffer country-specific shocks. The reforms prompted by the crisis (e.g., the European Stability Mechanism and

Hodgson: Abu Dhabi Investment Authority (ADIA) – documenting the story of one of the world’s largest sovereign wealth funds

adia

ABSTRACT: The surge of interest in ADIA in recent years has increased their interest in documenting and recording their history. The national centre for research and development has recently become the United Arab Emirates national archive centre having the largest documentation in the GCC. As

Dixon & Monk: Financializing Development – Toward a Sympathetic Critique of Sovereign Development Funds

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ABSTRACT: In this paper we unpack the scope and possibilities of sovereign development funds in different forms and under different political-cum-institutional conditions as a policy tool supporting economic growth and development, particularly in developing countries. Defining what that purpose should be and what is possible

Auping, de Jong, Pruyt & Kwakkel: The Geopolitical Impact of Shale Gas – The Modelling Approach

Fracking_Graphic_t670-300x272

ABSTRACT: The US’ shale gas revolution, a spectacular increase in natural gas extraction from previously unconventional sources, has led to considerable lower gas prices in North America. This study focusses on consequences of the shale gas revolution on state stability of traditional oil and gas

Amico: Corporate Governance Enforcement in the Middle East and North Africa

corporate-governance_2736-29

ABSTRACT:

Corporate governance frameworks in the Middle East and North Africa region have undergone a substantial evolution in the past decade. Better enforcement of corporate governance rules and regulations has in the past three years emerged as both a policy challenge and a priority for the region. This emphasis on better enforcement reflects a number of trends including political changes in some countries of the region, the global call for better surveillance of the adoption of governance rules as well as low investor engagement in the region.

This paper examines key developments in public and private corporate governance enforcement in the region. It highlights the growing level of public enforcement as expertise within the securities regulators is growing. The paper provides policy recommendations on specific aspects of governance frameworks such as the treatment of related party transactions and board member responsibilities which – if better regulated – could result in more effective governance enforcement in the region.

 

Available for download here.

Balassone, Momigliano, Romanelli & Tommasino: Just Round the Corner? Pros, Cons, and Implementation Issues of a Fiscal Union for the Euro Area

Flag_of_Europe

ABSTRACT:

The experience of other successful monetary unions and economic theory suggest that the euro area would benefit from the establishment of a supranational fiscal capacity (a fiscal union), to buffer country-specific shocks. The reforms prompted by the crisis (e.g., the European Stability Mechanism and the banking union) are introducing – though to a limited extent – elements of cross-country risk sharing. In particular, the banking union will help smoothing out some of the most relevant asymmetric shocks that can affect the euro area, i.e., the financial crises. Nevertheless, further elements of risk sharing are probably needed. Proposals to create a sort of rainy-day fund for the euro area present major practical difficulties – associated, inter alia, to the uncertainty characterising the identification of shocks in real time. A more appropriate solution, consistent with how risk sharing operates in existing federations – though not without implementation issues – may be centralizing specific public functions. We argue that, among these, consideration should also be given to the creation of a euro-wide, notional-defined contribution pension scheme.

Available for download here.

 

Hodgson: Abu Dhabi Investment Authority (ADIA) – documenting the story of one of the world’s largest sovereign wealth funds

adia

ABSTRACT:

The surge of interest in ADIA in recent years has increased their interest in documenting and recording their history. The national centre for research and development has recently become the United Arab Emirates national archive centre having the largest documentation in the GCC. As an extremely private, reserved and fast growing sovereign wealth fund, ADIA offers unique new challenges to NCRD. This study analyses the methods being used in this project. Apart from collecting, saving, and digitising all existing documents from the company’s 36 year history, a considerable amount of documentation will be based on oral interviews with past and present employees. These oral history interviews will considerably enlighten many and answer important scholarly questions on the founding, evolution and growth of the largest sovereign wealth fund in the world today.

Available for download here.

Dixon & Monk: Financializing Development – Toward a Sympathetic Critique of Sovereign Development Funds

seed

ABSTRACT:

In this paper we unpack the scope and possibilities of sovereign development funds in different forms and under different political-cum-institutional conditions as a policy tool supporting economic growth and development, particularly in developing countries. Defining what that purpose should be and what is possible is complicated by a number of factors. The form of government of the sovereign sponsor and the significance of public legitimacy may help or hinder different types of investment mandates. Moreover, different investment mandates and their relative sophistication require organizational capabilities and expertise that are often not available locally or are insufficiently developed, such that the implementation of certain investment mandates is constrained and/or too costly. The purpose and the design possibilities of a sovereign development fund are, ultimately, contingent on local conditions, resources, and the essential developmental needs of the country and its population.

 

Available for download here.

Auping, de Jong, Pruyt & Kwakkel: The Geopolitical Impact of Shale Gas – The Modelling Approach

Fracking_Graphic_t670-300x272

ABSTRACT:

The US’ shale gas revolution, a spectacular increase in natural gas extraction from previously unconventional sources, has led to considerable lower gas prices in North America. This study focusses on consequences of the shale gas revolution on state stability of traditional oil and gas exporting countries in the vicinity of the EU. For this purpose, we developed two separate SD models. The first model was used for assessing the impact of shale gas and energy decoupling on oil and gas price developments. We selected some of these price developments as input scenarios for a second SD model. This SD model was used for assessing the impact of energy price scenarios on countries’ economic development, and via the development of unemployment and purchasing power, on state stability. The conclusion of this study was that while shale gas developments may be seen as a part of the standard energy hog-cycle, this may lead to pressure on oil prices, which may cause instability in traditional oil and gas producing countries in the neighbourhood of the EU. Further, the effects of energy decoupling may have an even larger effect on putting energy prices under pressure, thus leading to social unrest.

 

Available for download here.

 

Bachher & Monk: Attracting Talent to the Frontiers of Finance

ABSTRACT:

A growing number of public pensions and sovereign funds located in regions without a history of financial services are making direct investments that bypass traditional financial intermediaries. It seems the world’s financial center of gravity is shifting away from the traditional financial hubs, such as London, New York and Tokyo, to cities at the frontiers of financial markets. Significantly, this new geography of finance and investment offers some unique opportunities for these investors to leverage their organizational endowments (e.g., scale, time horizon, certainty of capital, etc.) through creative capital deployments (e.g., in-house management, seeding new managers, etc.). However, it also creates a variety of new challenges. For example, how do public pension and sovereign funds set up world-class investment organizations out on the frontiers of finance? More specifically, how do these funds attract the talented investment staff they require to implement a sophisticated investment strategy that combines both in-house and external mandates? In this brief white paper, we highlight how certain public pension and sovereign funds are attracting the necessary human resources. We focus, in particular, on the recruitment of the organization’s leaders, both current and future, within the investment departments.

 

Available for download here.

Berkowitz, Ma & Nishioka: Recasting the Iron Rice Bowl – The Evolution of China’s State Owned Enterprises

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ABSTRACT:

China’s state owned enterprises (SOEs) became profitable following the enactment of reforms to “grasp the big and let go of the small” in the mid-1990s. However, profitability is not necessarily indicative of restructuring because SOEs may receive preferential treatment from the state including bailouts, access to cheap inputs, and product market protections (Kornai, 1990; and 1992, Part III). Did China’s SOEs become profitable because of their connections to the state or because they operated more productively? This paper shows that SOEs in the manufacturing sector became more profitable for two reasons. First, because the elasticity of substitution between capital and labor exceeds unity and the SOEs’ cost of capital fell over time, SOEs earned profits by both drastically cutting labor and replacing labor with capital. Second, SOEs were under less political pressure to hire excess labor. While SOEs became more profitable, their productivity was lower than in private and foreign firms.

Available for download here.

Bachher, de Bever, Chuyan & Monk: Rethinking Investment Performance Attribution

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ABSTRACT:

Proprietary information and data-processing systems have become key competitive differentiators for investors; better systems provide better data, which in turn drive better investment decisions and performance. But while the best systems are multifaceted and touch all aspects of the investment organization, one component of such systems is increasingly important: the measurement and attribution of investment performance. Performance attribution should do more than just explain the past; it should also be a tool to make better future investment decisions. This article describes the Alberta Investment Management Corporation’s journey to develop a performance attribution system as an investment management tool, in the hope of contributing to the institutional investor debate on how to best address this important topic.
Available for download here.

Gallagher & Prates: Financialization and the Resource Curse – The Challenge of Exchange Rate Management in Brazil

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ABSTRACT:

A stable and competitive exchange rate is imperative for efforts to diversify an economy an open economy setting. However, there are an increasing number of exogenous economic and political factors in Brazil and other emerging market economies that accentuate the difficulties of shifting toward a more developmentalist economic policy. Nevertheless, over the past decade or more Brazil has developed a broad array of tools that enable the country to address the exogenously determined factors related to exchange rate instability. These tools have been a modest success at best, but lay the groundwork for what may be the necessary economic policies and political conditions for a more comprehensive program to achieve stability–‐led diversified growth in Brazil.

Available for download here.

Kuang: Determinants of Internal and External Corporate Governance Predictors of Operational Risk of Fraud of China’s State Owned Enterprises

ABSTRACT:

This paper attempts to estimate the impact of four factors on corporate fraud rate using panel data of China’s State Owned Enterprises. The sample period is 2010-2012. We extract company information from annual reports of 60 State Owned Enterprises. We found strong evidence that independence of board members is negatively correlated to the number of fraudulent cases. The other three variables – Relation Base ,Executive Board and Educational level – are positively correlated.

Available for download here.

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