The Asay (1982) option pricing model prices options on futures contracts where the premia are margined. The model assumes that the volatility of the underlying futures contract is constant over the life of the option. However it is an empirical observation in many markets that options on the...

This paper investigates the price and volume behaviour around the announcement of a type of off-market repurchase (equal access repurchases) in Australia. In contrast to US studies which document abnormal returns of around 8% for off-market repurchases, we find much smaller but significant...

In September 2001 when Pasminco Ltd was placed in voluntary administration, it was the world’s biggest zinc producer with over 10% of global output. This paper examines the hedging strategies that Pasminco had in place in the years leading up to the firm being declared insolvent and...

This paper develops a methodology for analysing the impact of the risk-weighting approach to bank capital adequacy upon bank pricing. The approach, based on a capital-budgeting framework, considers how the risk weights constrain bank leverage and the likely effects upon bank funding costs. The...

Editor's Note: It is a policy of this Journal to present occasional articles on subjects of significant interest in management research or applications. The following paper has been commissioned as a contribution to the series. The paper discusses the topic of monetary targeting, a major issue...

Corporate failures and consequent default on obligations have, in some circumstances, led to significant losses for employees with accumulated unpaid leave entitlements. The Australian government responded initially to this problem by implementing a government-funded compensation scheme....

This paper examines the impact of recent changes in the prudential regulation of non-bank financial institutions in Australia, with a particular focus upon the implications for coöperative financial institutions, such as credit unions. Such institutions are unable to raise external capital to...