Search results

The following address has been sent to the President of the French Republic :—

This paper presents an analytical framework for determining efficient levels and durations of precontractual investigation. Economic efficiency in the allocation of investigation tasks between client and tenderer is shown to depend on how closely related the technologies of investigation and construction are. Moreover, risk aversion and the interest rate affect the efficient allocation. The framework is also used as a basis for an investment analysis of the balance between client's investigation efforts and expected claims in the future. Finally, the framework is used to show how the optimal length of the investigation period can be derived from the expected cash flow associated with a project over its total life cycle, from inception to demolition. Results indicate the economic potential of tailoring risk sharing in construction procurement, according to the type of construction project and the attitudes to risk among client and contractors.

The purpose of this paper is to provide a comprehensive background on the recent legislative, regulatory, and prosecutorial scrutiny of mutual funds and underlying issues such as the level and transparency of fees and costs, distribution and sales practices, and fund governance.

Provides a detailed chronology of events since January 2003 concerning mutual fund scandals such as trading abuses and questionable sales practices and related issues such as revenue sharing, directed brokerage, soft dollars, market timing, late trading, and selective disclosure. The chronology in this issue of JOIC will be followed an article in the next issue that describes reform initiatives that have taken place in response to the scandals.

Despite criticism and scrutiny of equity mutual funds following poor performance in 2001 and 2002, meaningful efforts to achieve reform began to lose momentum in mid‐2003. Then concern with mutual fund abuses was reignited in September 2003 when New York Attorney General Eliot Spitzer announced a settlement with Canary Capital that involved market timing, late trading, and selective disclosure. Since then there have been numerous disclosures of fund trading abuses and questionable trading practices, and the resulting uproar has triggered significant efforts to reform the manner in which funds and their service providers conduct business.

This comprehensive chronology provides an essential reference by bringing together all the events and underlying issues related to mutual fund scandals, abuses, regulation, compliance, and reform efforts since January 1, 2003.

To describe the broad range of reform initiatives that has been undertaken in response to a series of mutual fund scandals that have become apparent starting in 2003. This is the second of a two‐part article. The first part, in Volume 7, Number 1, is a chronology of developments related to the fund scandals since 1 January 2003.

Describes SEC reforms, including governance reforms; compliance reforms; SEC‐directed expanded disclosure regarding fund expenses and costs; reforms with respect to share distribution practices; reforms addressing market timing, selective disclosure, and fair value pricing; other reform initiatives including codes of ethics for investment advisers and a requirement that hedge fund advisers register with the SEC; an enhanced surveillance and inspection program for mutual funds; and enforcement activities. Describes private civil suits brought against fund companies, legislative proposals, the roles of NASD and New York State Attorney General Eliot Spitzer, the development of “best practices” guides by industry groups, and measures being promoted by institutional investors.

A broad range of reform initiatives has been undertaken by the SEC; NASD; and the New York, Massachusetts, and California Attorneys General. Both the US House of Representatives and the Senate have held hearings and proposed legislation, which at the moment appears dormant. Independent directors of only one mutual fund have been implicated in the trading abuse scandals. Hundreds of private civil lawsuits have been brought by fund shareholders against fund groups but virtually none has resulted in substantial restitution to plaintiffs.

A detailed and comprehensive analysis of reform initiatives in response to mutual fund scandals since 2003.

The treatment of marketing expenditures will influence how the firm makes decisions. This paper discusses the relationship between the firm's marketing effort and the firm's marketing investment. Current practice in most companies dictates that marketing costs are treated as expenses and this leads to marketing executives lacking the required information for effective decision making. Often the wrong pressures are placed on the marketing function resulting in poor marketing decisions and consequently affecting the financial performance of the firm.