Divergent approaches to investment : a tale of three local councils

Greg Jones, Ciorstan Smark, Anne Abraham

    Research output: Chapter in Book / Conference PaperConference Paperpeer-review

    Abstract

    ![CDATA[The Global Financial Crisis of 2008 led to a substantial write-down in the value of investments such as Collateralised Debt Obligations (CDOs) with one class of investors being NSW local councils. This paper analyses interviews with three local councils, each of which took a substantially different approach to CDO investment. It adopts the lens of Bourdieu’s Theory of Practice to describe and explain behaviour regarding decisions to invest (or not) in CDOs, and how these decisions impacted on them. Interesting themes arise regarding differing views on the appropriate role of local councils, and on the degree and form of “capital” (which includes knowledge, competencies, skills and economic resources) that a council should have before investing in sophisticated financial products. The contribution of this paper is that it explores how three local councils came to quite divergent interpretations of what constitutes an “appropriate” investment and provides policy suggestions for future local council governance.]]
    Original languageEnglish
    Title of host publicationRefereed Proceedings of the 36th Annual Conference of the Australian and New Zealand Regional Science Association International : University of Wollongong, 4-7 December 2012
    PublisherAERU Research Unit
    Pages113-123
    Number of pages11
    ISBN (Print)9781877519321
    Publication statusPublished - 2012
    EventAustralian and New Zealand Regional Science Association. Conference -
    Duration: 4 Dec 2012 → …

    Conference

    ConferenceAustralian and New Zealand Regional Science Association. Conference
    Period4/12/12 → …

    Keywords

    • local government
    • Global Financial Crisis, 2008-2009
    • collateralized debt obligations
    • investments

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