Hedge Fund Regulation and Misreported Returns
by Na Dai
European Financial Management 16, 2010, 829-857. Co-authored with Douglas Cumming
This paper introduces a cross-country law and finance analysis of the misreporting behavior in the hedge fund industry... more This paper introduces a cross-country law and finance analysis of the misreporting behavior in the hedge fund industry in terms of smoothing returns so that a fund consistently generates positive returns. We find strong evidence that international differences in hedge fund regulation are significantly associated with the propensity of fund managers to misreport monthly returns. We find a positive association between wrappers and misreporting, particularly for funds that do not have a lockup provision. Also, we find some evidence that misreporting is less common among funds in jurisdictions with minimum capitalization requirements and restrictions on the location of key service providers. We assess the robustness of our finds to a number of specifications, including, different specifications of misreporting bin widths, subsets of the data by fund type, as well as specifications controlling for collinearity and selection effects and other robustness checks. We show misreporting significantly affects capital allocation, and calculate the wealth transfer effects of misreporting and relate this wealth transfer to differences in hedge fund regulation.
A Law and Finance Analysis of Hedge Fund
by Na Dai
Financial Management, Autumn 2010, 997-1026. Co-authored with Douglas Cumming
This paper empirically analyzes the impact of hedge fund regulation on fund structure and performance using a... more This paper empirically analyzes the impact of hedge fund regulation on fund structure and performance using a cross-country dataset of 3782 hedge funds from 29 countries. The data indicate regulatory requirements in the form of restrictions on the location of key service providers and permissible distributions via wrappers (securities that combine different products) tend to be associated with lower manipulation-proof performance measures, lower fund alphas, lower average monthly returns (as well as lower Sharpe ratios), higher fixed fees and lower performance fees. Also, the data show standard deviations of monthly returns are lower among jurisdictions with restrictions on the location of key service providers and higher minimum capitalization requirements.
Regulatory Induced Performance Persistence: Evidence from Hedge Funds
by Na Dai
Co-authored with Douglas Cumming
This paper proposes the idea that financial regulation can impact performance persistence. We test this... more This paper proposes the idea that financial regulation can impact performance persistence. We test this prediction in the context of the hedge fund industry in 48 countries over the years 1994-2008. The data show evidence of three types of regulation influencing performance persistence: (1) minimum capital restrictions, which restrict lower quality funds and hence increase the likelihood of performance persistence, (2) restrictions on location of key service providers, which restrict human capital choices and hence tend to mitigate performance persistence, and (3) distribution channels, which in some cases mitigate the strength of signals to attract higher quality investors that would otherwise enable performance persistence. We further show differences in the effect of regulation on persistence by fund quartile ranking.
Essential Facility Doctrine in Brazilian Telecommunications Sector
by José Antonio Batista De Moura Ziebarth
Co-authored with Gabriel Nascimento Pinto.
The telecommunications system went through a huge transformation during the 1990’s going from a constitutional based... more The telecommunications system went through a huge transformation during the 1990’s going from a constitutional based state monopoly to a private competitive structure, which required the creation of an independent regulatory body, ANATEL. This essay analyzes the consequences of this transformation as well as the application of the essential facilities doctrine in Brazil.
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Seen by:Regulation of Innate Immunity During Trypanosoma cruzi Infection
Fredy SR Gutierrez
In: Control of Innate and Adaptive Immune Responses during Infectious Diseases. Springer. Edited by Julio Aliberti
Chagas Heart disease is caused by the infection with T. cruzi. The mechanisms of disease progression remain largely... more
Chagas Heart disease is caused by the infection with T. cruzi. The mechanisms of disease progression remain largely unknown although it has been reported that parasite persistence as well as the intensity of the inflammatory immune response are determinants for the clinical manifestations of the disease.
Through a long co-evolutionary history, both the human immune system and the pathogen have acquired diverse mechanisms to interact, guaranteeing their mutual survival. Even though inflammation is indispensable for host defense and tissue repair, when deregulated or disproportionate, it can contribute to continuous tissue injury, organ dysfunction, and disease. Thus, the immune system has acquired a great complexity in order to maintain the host’s integrity while it is able to arrest the proliferation of pathogens as soon as detected.
This chapter aims to review the regulatory mechanisms involved in the control of the effectors mechanisms of the innate immunity during experimental T. cruzi infection and Chagas disease. It provides a comprehensive revision of the immunologic mechanisms triggered by the interaction of the parasite and the host cells during acute phase of the infection, as well as the possible implications for the design of therapeutic or diagnostic approaches.
Australian Adult Industry Censorship Survey 2002
Thus summary document presents the findings of a survey of members of the Australian Adult Industry undertaken in the... more
Thus summary document presents the findings of a survey of members of the Australian Adult Industry undertaken in the first quarter of 2002.
The aims of the research project were to determine the impact of the Broadcasting Services Amendment (Online Services) Act 1999 on commercial operators of adult
services and product sales in Australia.
Overall, while the total response rate to the survey as was low, sixty respondents participated in the research project, comprised of companies from all parts of the Australian
Adult Industry.The research found that, in relation to Internet censorship:
· Awareness of the law was reasonably high
· Limited action was taken in response to the law
· The law had limited impact on the industry
In Addition, with regards to the use of new media by commercial operators:
· Website growth rates remain steady
· Advertising remains the primary function of adult industry websites
· The ratio of eCommerce providers to non-providers continues to rise
· Continued growth in eCommerce is anticipated
42 views
Seen by:Community without flesh: First thoughts on the new Broadcasting Services Amendment (Online Services) Bill 1999
Chen, P., 1999, "Community without flesh: First thoughts on the new Broadcasting Services Amendment (Online Services) Bill 1999", M/C: a Journal of Media and Culture, 2(3)
On Wednesday 21 April the Minister for Communications, Information Technology and the Arts introduced a piece of... more
On Wednesday 21 April the Minister for Communications, Information Technology and the Arts introduced a piece of legislation into the Australian Senate to regulate the way
Australians use the Internet. This legislation is presented within Australia's existing system of content regulation, a scheme that the Minister describes is not censorship, but merely regulation
(Alston 55). Underlying Senator Alston's rhetoric about the protection of children from snuff film makers, paedophiles, drug pushers and other criminals, this long anticipated bill is aimed at
reducing the amount of pornographic materials available via computer networks, a censorship regime in an age when regulation and classification are the words we prefer to use when society draws the line under material we want to see, but dare not allow ourselves access to.
Lust, Greed, Sloth: The Performance and Potential of Internet Co-Regulation in Australia
Chen, P, 2002, "Lust, Greed, Sloth: The Performance and Potential of Internet Co-Regulation in Australia", Griffith Law Review, 11(2)
Australia's Internet censorship regime: History, form and future
Chen, P, 1999, "Australia's Internet censorship regime: History, form and future”, University of Western Sydney Law Journal Special Edition, 3
Australia's online censorship regime: the Advocacy Coalition Framework and governance compared
Chen, P, 2001, Australia's online censorship regime: the Advocacy Coalition Framework and governance compared - Australian National University
This study assesses the value of two analytical models explaining particular
contemporary political events. This... more
This study assesses the value of two analytical models explaining particular
contemporary political events. This is undertaken through the comparative evaluation of
two international models: the Advocacy Coalition Framework and Rhodes's model of
Governance. These approaches are evaluated against an single case study: the
censorship of computer network ("online") content in Australia. Through comparison
evaluation, criticism, and reformulation, these approaches are presented as useful tools
of policy analysis in Australia.
The first part of the thesis presents the theoretical basis of the research and the
methodologies employed to apply them. It begins by examining how the disciplines of
political science and public policy have focused on the role of politically-active "interest"
groups in the process of policy development and implementation. This focus has lead to
ideas about the role of the state actors in policy making, and attempts to describe and
explain the interface between public and private groups in developing and implementing
public policies. These, largely British and American, theories have impacted upon
Australian researchers who have applied these ideas to local conditions. The majority of
this part, however, is spent introducing the two research approaches: Paul Sabatier's
Advocacy Coalitions Framework and Rod Rhodes's theory of Governance. Stemming
from dissatisfaction with research into implementation, Sabatier's framework attempts to
show how competing clusters of groups and individuals compete for policy "wins" in a
discrete subsystem by using political strategies to effect favourable decisions and
information to change the views of other groups. Governance, on the other hand,
attempts to apply Rhodes's observations to the changing nature of the British state (and
by implication other liberal democracies) to show the importance of self-organising
networks of organisations who monopolise power and insulate the processes of decision
making and implementation from the wider community and state organs. Finally, the
methodologies of the thesis are presented, based on the preferred research methods of
the two authors.
The second part introduces the case serving as the basis for evaluating the models,
namely, censorship of the content of computer networks in Australia between 1987 and
2000. This case arises in the late 1980s with the computerisation of society and
technological developments leading to the introduction of, first publicly-accessible
computer bulletin boards, and then the technology of the Internet. From a small
hobbyists' concern, the uptake of this technology combined with wider censorship issues
leads to the consideration of online content by Australian Governments, seeking a
system of regulation to apply to this technology. As the emerging Internet becomes
popularised, and in the face of adverse media attention on, especially pornographic,
online content, during the mid to late 1990s two Federal governments establish a series
of policy processes that eventually lead to the introduction of the Broadcasting Services
Amendment (Online Services) Act 1999, a policy decision bringing online content into
Australia's intergovernmental censorship system.
The final part analyses the case study using the two theoretical approaches. What this
shows is that, from the perspective of the Advocacy Coalition Framework, debate over
online content does not form a substantive policy subsystem until 1995, and within this
three, relatively stable, competing coalitions emerge, each pressuring for different levels
of action and intervention (from no regulation, to a strong regulatory model). While
conflict within the subsystem varied, overall the framework's analysis shows the
dominance of a coalition consisting largely of professional and business interests
favouring a light, co-regulatory approach to online content. From the perspective of
Governance, the issue of online content is subject to a range of intra- and inter-
governmental conflict in the period 1995–7, finally settling into a negotiated position
where a complex policy community emerges based largely on structurally-determined
resource dependencies. What this means is that policy making in the case was not
autonomous of state institutions, but highly dependent on institutional power relations.
Overall, in comparing the findings it becomes apparent that the approaches lack the
capacity to fully explain the role of key sovereigns, defined here as those individuals with
legal authority over decision making in the policy process, because of their
methodological and normative assumptions about the policy process. By showing these
individuals as part of wider networks of power-dependencies, and exploring the complex
bundle of real, pseudo, symbolic, and nonsense elements that make up a policy, the role
of Ministers as "semi-sovereign sovereigns" can be accommodated in the two
approaches.
The regulation of nicotine the UK: how nicotine gum came to be a medicine but not a drug
with Emilie Cloatre and Robert Dingwall. (2012) Journal of Law and Society, 39(1): 39-57.
This article explores the utility of Actor-Network Theory (ANT) as a tool for socio-legal research. ANT is deployed in... more This article explores the utility of Actor-Network Theory (ANT) as a tool for socio-legal research. ANT is deployed in a study of the evolution of divided regulatory responsibility for tobacco and medicinal nicotine (MN) products in the United Kingdom, with a particular focus on how the latter came to be regulated as a medicine. We examine the regulatory decisions taken in the United Kingdom in respect of the first MN product: a nicotine-containing gum developed in Sweden, which became available in the United Kingdom in 1980 as a prescription-only medicine under the Medicines Act 1968. We propose that utilizing ANT to explore the development of nicotine gum and the regulatory decisions taken about it places these decisions into the wider context of ideas about tobacco control and addiction, and helps us to understand better how different material actors acted in different networks leading to very different systems of regulation.
Reforming pharmaceutical regulation: a case study of generic drugs in Brazil
Thesis manuscript
Brazil is renowned worldwide for its remarkable reforms in pharmaceutical regulation, which have enhanced access to... more
Brazil is renowned worldwide for its remarkable reforms in pharmaceutical regulation, which have enhanced access to essential medicines while lowering drug costs. As part of these reforms, the Generic Drug Act was introduced in 1999. This policy mandates that pharmaceutical products that are no longer protected by a patent must be interchangeable with an innovator (reference) drug. This thesis examines how and why Brazil promoted this large-scale regulatory policy. The literature on pharmaceutical policy often invokes international guidelines that inspire countries to reformulate their regulatory regimes or argues that regulations emerge in order to serve the interests of powerful interest groups. In contrast, this thesis examines how changes in the regulatory environment affect actors’ policy preferences. It argues that as actors adapt and respond to new regulatory environments, they also push the policy path further along the way.
This historical qualitative case study relies on in-depth interviews and documentary research to trace the policy process of generic drug regulation in Brazil. It finds that Brazil’s generic drug reform can be attributed to a convergence of the evolution of pharmaceutical regulation, unexpected events (AIDS epidemic and scandal of fake medicines) and political activity of the Minister of Health. In turn, this study demonstrates that the new regulatory development altered the preferences of local pharmaceutical firms, who now support and uphold a policy they once opposed because of the high costs associated with adapting their industrial plants and processes. The regulation of generic drugs has also culminated in other unintended consequences. Public pharmaceutical factories were still unable to fully adjust to the new regulatory environment and patient groups slowly became aware of these limitations. Paradoxically, the generic drug regulation introduced in the name of patients and opposed by local pharmaceutical firms, is today opposed by important patient advocacy groups but solidified by the strong support of local and multinational pharmaceutical firms.
These findings suggest although pharmaceutical firms strongly support the generic drug regulation today; they did not control the policy process that created it. Although Brazil’s norms resemble international guidelines, they were developed locally. Brazil’s case demonstrates that evolution of domestic political institutions were the most important determinant of the timing and direction of the regulatory policy. Thus, this thesis concludes that the state still matters for pharmaceutical regulation and that pharmaceutical regulation is only partially influenced by non-state actors.
An Examination of the CAFE Standards and Mandatory Environmental Regulations
by Texas State PA Applied Research Projects
Diaz, Paul A., "An Examination of the CAFE Standards and Mandatory Environmental Regulations" (2011). Applied Research Projects, Texas State University-San Marcos. Paper 367.
The purpose of this study to understand how changes in the Corporate Average Fuel Economy (CAFE) standards affect fuel... more The purpose of this study to understand how changes in the Corporate Average Fuel Economy (CAFE) standards affect fuel efficiency of foreign and domestic passenger cars. Method: This project utilizes two interrupted time series regression analyses with comparison groups to test formal hypotheses. This research evaluates longitudinal trends before and after the manipulation of the CAFE standard in order to determine the effect the change has had on the fuel efficiency of both vehicle groups. Results: The interrupted time series regression analyses show that both foreign and domestic fuel economy averages significantly increased following the implementation of the CAFE standards. Additionally, the test show following the stagnation of the policy, there is a significant decrease in the trend lines of both vehicle groups.
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Seen by:“Reform or revolution”? Polanyian versus Marxian perspectives on the regulation of the economic
NILQ 62(4): 415-31
Rosa Luxembourg’s 1900 pamphlet “Reform or revolution”, which critiqued reformist political strategy, has relevance... more Rosa Luxembourg’s 1900 pamphlet “Reform or revolution”, which critiqued reformist political strategy, has relevance to, and finds echoes in today’s debates on the possibility and desirability of using law to protect society from the market’s negative effects. It also summed up the nineteenth-century “Polanyian” reformist and Marxist “revolutionary” perspectives. Polanyi argued that “the economic” must be “embedded” in the social by means of legal regulation, an argument he illustrates with the help of the “Speenhamland” example. Marx, while acknowledging the role of the legal struggle as part of class struggle, concludes that ultimately “right can never be higher than the economic structure of society”. Marxist legal theorist Pashukanis developed this position in his “commodity form theory of law” which points to the structural impossibility of law’s regulation of capitalism. While contemporary “Polanyist” Ruggie again asserts that legal and soft law “global governance” regimes can control capitalism’s main instrument, the corporation, Shamir contra Ruggie argues that the “moralisation of markets” through corporate social responsibility (CSR) leads to the “marketisation of morality” or a change in what we perceive law to be (and who has legitimate authority to regulate) rather than a “taming” of markets. Following Shamir, I add that this corporate-led global governance hastens the collapse of capitalism, and confirms the inevitability of revolution and the subsequent creation of a law-free society.
Special Issue: STEM CELL STORIES 19982008
special issue edited with Ingrid Geesink and Sarah Franklin
Special Issue: STEM CELL TECHNOLOGIES 19982008: CONTROVERSIES AND SILENCES Contributors to this Issue
Special issue edited with Ingrid Geesink and Sarah Franklin
Bracketing off population does not advance ethical reflection on EVCs: A reply to Kayser and Schneider.
co-authored with Amade M'Charek and Victor Toom. Published in Forensic Science International: Genetics.
Genomic stuff: Governing the (im) matter of life
Emphasizing the context of what has often been referred to as
“scarce natural resources”, in particular forests,... more
Emphasizing the context of what has often been referred to as
“scarce natural resources”, in particular forests, meadows, and fishing stocks,
Elinor Ostrom’s important works, including Governing the commons (1990) and
Understanding institutional diversity (2005), present an institutional framework
for discussing the development and use of collective action with respect to
environmental problems. In this article we discuss extensions of Ostrom’s approach
to human genes and genomes and explore its limits and usefulness in this field. We
argue that while there are radically different contexts and cases and governance
regimes still to be debated, what we call “genomic stuff” – genomic material,
data, and information – often can best be regulated by modes of stewardship and
self-regulation of appropriators. We exemplify this claim by a discussion of gene
patenting, the “Genome War”, and the so-called HapMap project. The issue of
how to best govern the genomic stuff of humans, we suggest, is complicated by
the situation that the appropriator and the appropriated can be the same, inviting
fundamental questions about politics and ethics.

