“…Sufficient inflows of debt capital converted to equity could drive the marginal cost of capital down to the low tax‐free world supply price. Industry superfunds using compulsory savings also invest heavily in franking‐credit stocks. Foreigners can exempt themselves from paying Australian corporate tax simply by recycling their otherwise largely valueless imputation credits to Australians eligible for imputation benefits, as indicated by Grant et al () and summarised in Figure with the percentage change in holdings by each group of investors shown on the vertical axis and the days around the ex‐dividend date on the horizontal axis, but this arbitrage opportunity still leaves many foreign portfolio investors with franking credits of limited, or possibly no, value to themselves.Australians investing offshore may incur an additional risk premium approximately equal in magnitude to the penalty they suffer from lack of imputation credit eligibility.…”
Section: Introductionmentioning
confidence: 99%
“…Trading in the Quintile of High‐Dividend Yield Stocks around the Ex‐Dividend Day. Source : Grant et al ().…”
I apply a new single‐pass capital asset pricing model methodology for assessing systematic risk to all ASX stocks which indicates that securities which pay franking credits in Australia appear to face far less systematic risk than do stocks that never pay franking credits. But in this context, this apparent reduction in systematic risk can be interpreted as being due to franking credits that are close to being fully priced. An efficient equilibrium is reached in which the marginal investor in Australia pays little or no Australian corporate tax because, once she exhausts compulsory savings, she borrows offshore and converts debt to equity.
“…Sufficient inflows of debt capital converted to equity could drive the marginal cost of capital down to the low tax‐free world supply price. Industry superfunds using compulsory savings also invest heavily in franking‐credit stocks. Foreigners can exempt themselves from paying Australian corporate tax simply by recycling their otherwise largely valueless imputation credits to Australians eligible for imputation benefits, as indicated by Grant et al () and summarised in Figure with the percentage change in holdings by each group of investors shown on the vertical axis and the days around the ex‐dividend date on the horizontal axis, but this arbitrage opportunity still leaves many foreign portfolio investors with franking credits of limited, or possibly no, value to themselves.Australians investing offshore may incur an additional risk premium approximately equal in magnitude to the penalty they suffer from lack of imputation credit eligibility.…”
Section: Introductionmentioning
confidence: 99%
“…Trading in the Quintile of High‐Dividend Yield Stocks around the Ex‐Dividend Day. Source : Grant et al ().…”
I apply a new single‐pass capital asset pricing model methodology for assessing systematic risk to all ASX stocks which indicates that securities which pay franking credits in Australia appear to face far less systematic risk than do stocks that never pay franking credits. But in this context, this apparent reduction in systematic risk can be interpreted as being due to franking credits that are close to being fully priced. An efficient equilibrium is reached in which the marginal investor in Australia pays little or no Australian corporate tax because, once she exhausts compulsory savings, she borrows offshore and converts debt to equity.
“…This tourism safe space may parallel what we see in the mental health literature, where safe spaces are places of non-judgement, of feeling heard, and of expressing oneself freely (Bulman & Hayes, 2011). These safe spaces can allow hosts and visitors to sit with the tensions of the unfinished business of the nation's colonial history (Grant, 2019). Indigenous tourism encounters appear pertinent in this respect as Australian society does not provide many safe spaces where Aboriginal people can be free from racism and marginalisation, or for non-Indigneous Australians to openly ask questions about Aboriginal knowledges or cultures (Reconciliation Australia, 2018).…”
Section: Hostingmentioning
confidence: 60%
“…By practicing reconciliation, operators manifest their agenda with its cultural, environmental, and social values, thereby bringing a distant goal into the present. This practice echoes Garvey's (2015) application of an arena metaphor to describe movements within, towards, and away from contested cross-cultural social settings, and Grant's (2019) sentiment that national reconciliation is not so much an endpoint but a commitment, with ongoing issues, discomforts, and tensions to be worked out.…”
Section: Practicing Reconciliationmentioning
confidence: 67%
“…Tourism has long been proposed to facilitate cross-cultural contact (Tomljenovic, 2010). In the Australian case, Grant (2019) explains that "most Australians have never met an Indigenous person and may be utterly unaware if they had. People like meurban, mixed race, middle classappear like any other Australian; another face on our multi-ethnic streets" (p. 204).…”
The notion that Indigenous tourism can advance reconciliation contrasts with prevailing 'tourism as industry' discourses. Commodification processes treat tourists as consumers, rather than as visitors to a place, or visitors to the people of a place. How can Indigenous tourism deliver sustainable benefits to the hosts and communities that receive visitors? This study adopts critical Indigenous methodology with constructivist grounded theory, as we source and validate theoretical constructs of sustainability in Indigenous tourism with Aboriginal tourism operators themselves. Three practices emerge, namely hosting, connecting, and sharing. Through hosting, operators set the scene for culturally safe interactions. Through connecting, hosts and tourists recognise their shared humanity. Through sharing, local identities, cultures, and histories are brought to the surface. These three practices of hosting, connecting, and sharing arise from the agency, and thereby reinforce the agency, of Aboriginal tourism operators. In order for Indigenous tourism operators and communities to derive sustainable benefits from receiving visitors, such engagements must be founded on recognition and respect for Indigenous agency. These practices imply reciprocity and point to local understandings of reconciliation, not as an endpoint, but as a practice in the here and now. We argue that this represents a strengths-based model of Indigenous tourism.
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