Serveur d'exploration sur les relations entre la France et l'Australie

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A political economy approach to regulated Australian information disclosures

Identifieur interne : 007F40 ( Main/Exploration ); précédent : 007F39; suivant : 007F41

A political economy approach to regulated Australian information disclosures

Auteurs : Matthew Haigh [France] ; James Guthrie [Australie]

Source :

RBID : ISTEX:823A86491275DA2BDFF3B1AF5490FB5FA564E114

Descripteurs français

English descriptors

Abstract

In an effort to improve comparability between socially responsible investment products and standardize investment terminology, Australian legislators recently required investment managers to report to retail investors the extent to which ‘social considerations’ are used in portfolio construction. Using a lens of political economy, this paper assesses whether the objectives of the legislation to standardize investment terminology, promote inter‐product comparability and encourage the accountability of product claims have been met. The context of legislative development is examined in Australian Parliamentary debates. Practised accountabilities are identified by examining a representative sample of the initial set of regulated disclosures issued. The quality of regulated information disclosures is assessed by the degree of correlation with legislators' objectives and the regulatory requirements. Initial disclosures were poor, providing little basis for comparability. In some instances, the quality of information had declined relative to the information supplied on a voluntary basis before the legislation took effect. The evidence supports a criticism of a regulatory laissez faire approach to self‐reporting and an argument for more directed regulation of management processes.

Url:
DOI: 10.1111/j.1467-8608.2009.01557.x


Affiliations:


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Le document en format XML

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<term>Regulatory requirements</term>
<term>Relevant disclosures</term>
<term>Representative sample</term>
<term>Research method</term>
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<term>Retail investment products</term>
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<div type="abstract" xml:lang="en">In an effort to improve comparability between socially responsible investment products and standardize investment terminology, Australian legislators recently required investment managers to report to retail investors the extent to which ‘social considerations’ are used in portfolio construction. Using a lens of political economy, this paper assesses whether the objectives of the legislation to standardize investment terminology, promote inter‐product comparability and encourage the accountability of product claims have been met. The context of legislative development is examined in Australian Parliamentary debates. Practised accountabilities are identified by examining a representative sample of the initial set of regulated disclosures issued. The quality of regulated information disclosures is assessed by the degree of correlation with legislators' objectives and the regulatory requirements. Initial disclosures were poor, providing little basis for comparability. In some instances, the quality of information had declined relative to the information supplied on a voluntary basis before the legislation took effect. The evidence supports a criticism of a regulatory laissez faire approach to self‐reporting and an argument for more directed regulation of management processes.</div>
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