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60 on government initiatives.
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60 on government initiatives.
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Expertise and representation in financial institutions: UK legislation on pension fund governance and US regulation of the mutual fund industry
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Clark, G. L. (2007) Expertise and representation in financial institutions: UK legislation on pension fund governance and US regulation of the mutual fund industry. 21st Century Society: Journal of the Academy of Social Sciences 2:1-23.
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Best-practice investment management
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Santa Fe, NM: Santa Fe Institute. Working Paper
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Arthur, W. B. (2005) The Logic of Invention. Santa Fe, NM: Santa Fe Institute. Working Paper.
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The design of financial systems: Towards a synthesis of function and structure
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Lerner, J., Schoar, A. and Wongsunwai, W. (2007) Smart institutions, foolish choices: The limited partner performance puzzle. Journal of Finance 62:731-764.
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Lerner, J.1
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In fact, Clark35 argues that expertise without some test of commitment to the goals and objectives of the institution is not sufficient to engender a level of engagement with the tasks and functions of a pension plan or any institution
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35 argues that expertise without some test of commitment to the goals and objectives of the institution is not sufficient to engender a level of engagement with the tasks and functions of a pension plan (or any institution).
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There are other salient features of this governance model, noted below. It is significant that when referring to this mechanism of trustee selection and compensation, interviewees tended to compare their ' professional ' approach to the standard representation model that dominates most trustee boards.
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There are other salient features of this governance model, noted below. It is significant that when referring to this mechanism of trustee selection and compensation, interviewees tended to compare their ' professional ' approach to the standard representation model that dominates most trustee boards.
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Lo, A. (2001) The adaptive markets hypothesis: Market efficiency from an evolutionary perspective. Journal of Portfolio Management 30.
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25
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61 on different models of innovation diffusion that rely on a series of arguments about the manner and mode of diffusion when there are heterogeneous agents and when pay-offs are distributed into the future.
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61 on different models of innovation diffusion that rely on a series of arguments about the manner and mode of diffusion when there are heterogeneous agents and when pay-offs are distributed into the future.
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26
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The regulation of pension fund governance
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G.L.Clark, A. Munnell and M. Orszag eds, Oxford: Oxford University Press, pp
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Clark, G. L. (2006) The regulation of pension fund governance. In: G.L.Clark, A. Munnell and M. Orszag (eds.) The Oxford Handbook of Pensions and Retirement Income. Oxford: Oxford University Press, pp. 483-500.
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62 The evidence from Australia as regards the effects of competition between rival pension funds offering similar types of products is that this regulatory regime has tended to exaggerate the significance of short-term investment returns over the underlying volatility of returns and the long-term adequacy of offered pension products.
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62 The evidence from Australia as regards the effects of competition between rival pension funds offering similar types of products is that this regulatory regime has tended to exaggerate the significance of short-term investment returns over the underlying volatility of returns and the long-term adequacy of offered pension products.
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This argument is an informed observation about the facts-of-life of the sector underwritten by experience, and is an expression of academic research informed by the theoretical insights of North63 and Williamson 64 among many others
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64 among many others.
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The knot of contracts: The corporate geography of legacy costs
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Monk, A. H. B. (2008) The knot of contracts: The corporate geography of legacy costs. Economic Geography 84:211-236.
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Our reading of the relevant psychological research in the area suggests that rationality is a continuum, affected by both cognitive capacity and the environment such that the quality of decision-making under risk and uncertainty is subject to systematic biases.65,64 See Hilton66 on financial agents and Clark et al17 on pension fund trustees
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17 on pension fund trustees.
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34
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O ' Barr, W. and Conley, J. (1992) Fortune and Folly. Hoboken, NJ: Wiley NJ.
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O ' Barr, W. and Conley, J. (1992) Fortune and Folly. Hoboken, NJ: Wiley NJ.
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Governing finance: Global imperatives and the challenge of reconciling community representation with expertise
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Clark, G. L. (2008) Governing finance: Global imperatives and the challenge of reconciling community representation with expertise. Economic Geography 84:281-302.
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Clark, G.L.1
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36
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67 develops this argument with reference to the significance of financial theory in framing market agents ' actions and expectations. Equally, these theories have limited lives as is apparent in the global credit crisis, arguably the result of the widespread application of mis-placed theory as much as practice. Witness Greenspan's mea culpa.
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67 develops this argument with reference to the significance of financial theory in framing market agents ' actions and expectations. Equally, these theories have limited lives as is apparent in the global credit crisis, arguably the result of the widespread application of mis-placed theory as much as practice. Witness Greenspan's mea culpa.
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37
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Smart people doing dumb things: The case of managerial incompetence
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R.J. Sternberg ed, New Haven, CT: Yale University, pp
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Wagner, R. K. (2002) Smart people doing dumb things: The case of managerial incompetence. In: R.J. Sternberg (ed.) Why Smart People Can be so Stupid. New Haven, CT: Yale University, pp. 42-63.
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66,68.
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66,68.
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40
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Restructuring innovation in long-term regional change
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G.L. Clark, M. Feldman and M.S. Gertler eds, Oxford: Oxford University Press, pp
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Antonelli, C. (2000) Restructuring innovation in long-term regional change. In: G.L. Clark, M. Feldman and M.S. Gertler (eds.) Oxford Handbook of Economic Geography. Oxford: Oxford University Press, pp. 405-406.
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Antonelli, C.1
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41
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Conceptualizing the defined benefit pension promise
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Clark, G. L. and Monk, A. H. B. (2008) Conceptualizing the defined benefit pension promise. Benefits Quarterly 25 (1):7-18.
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Benefits Quarterly
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Clark, G.L.1
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Princeton, NJ: Princeton University Press, p
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Bowles, S. (2004) Microeconomics: Behaviour, Institutions, and Evolution. Princeton, NJ: Princeton University Press, p. 60.
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The shared circuits model: How control, mirroring, and simulation can enable imitation, deliberation and mindreading
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Best Practice? Geography, learning, and the institutional limits to strong convergence
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Gertler, M.S.1
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The financial crisis has been a moment to refl ect on their skills and knowledge as well as the role of regulation given the social costs of bank bailouts and the like. The CEO of the FSA has indicated that the government will likely require company nonexecutive board members to improve their technical skills and devote more time to their responsibilities.69 If anything, the, gap, between the skills and commitment of company board members and pension fund trustees will probably widen further as a consequence of the financial crisis. For an overview on the UK principles approach to corporate governance see Ford70 and Milhaupt and Pistor71, for an historical perspective in relation to the United States, see Roe.72
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72.
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Ramsey, G., Bastian, M. L. and Schaik, C. van (2007) Animal innovation defined and operationalized. Behavioural and Brain Sciences 30:393-407, and 425-437.
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In a study of global currency trading, Clark and Thrift73 show that, in moments of crisis, risk management involves the intensification of assessment and evaluation in relation to market exposure. In these situations, where there is no obvious, destination, for the market, risk management absorbs time, expertise and collective commitment in the hope of catching moments when market turmoil might take the institution into a spiral of decline
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73 show that, in moments of crisis, risk management involves the intensification of assessment and evaluation in relation to market exposure. In these situations, where there is no obvious ' destination ' for the market, risk management absorbs time, expertise and collective commitment in the hope of catching moments when market turmoil might take the institution into a spiral of decline.
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Hilton, D. J. (2003) Psychology and the financial markets: Applications to understanding and remedying irrational decision-making. In: J. Brocas and J.D. Carrillo (eds.) The Psychology of Economic Decisions, Volume 1: Rationality and Wellbeing. Cambridge: Cambridge University Press, pp. 273-297.
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