DIVERSIFICATION GAINS FROM INCLUDING REAL ESTATE IN MIXED-ASSET PORTFOLIOS*

Diversification gains in mean-variance efficiency derived from including real estate in financial asset portfolios are examined. Optimal financial and mixed-asset portfolios were generated by selecting from an investment universe including several distinct financial and real estate media. Deficiencies of previous studies were overcome by employing data with improved representativeness and comparability. The efficient mixed-asset portfolios dominated the efficient financial asset portfolios implying that purely financial asset diversification is inefficient. The optimal mixed-asset portfolio prescribed that approximately two-thirds of the investment wealth be allocated to real estate and one-third to the financial media.     

Landscape urbanization threatens plant phylogenetic diversity in the Brazilian Atlantic Forest

Urbanization causes species loss around the world, but its effects on phylogenetic diversity are poorly known in tropical forests. Using a patch-landscape approach in an urbanizing region of the Brazilian Atlantic Forest, we tested whether the increase in landscape urbanization reduces plant species density, phylogenetic richness and divergence, and increases the relatedness among co-occurring individuals and species. We assessed plant responses to urbanization in adult (diameter at breast height?>?10 cm) and sapling communities (2.5–10 cm diameter) separately, as saplings are proxies of the future flora. We sampled 2860 woody plants belonging to 155 species in nine circular landscapes with urbanization level varying from 0% to 45%, and estimated the relatedness among the species that have increased and decreased in relative abundance in more urbanized landscapes (winner and losers, respectively). As expected, species density and phylogenetic richness decreased with the increase in urbanization. These responses were consistent for adult and sapling communities, suggesting a persistent loss of species and lineages in more urbanized landscapes. Contrary to our expectations, phylogenetic divergence and structure did not respond to urbanization, indicating that the more urbanized landscapes still retain much evolutionary history. However, because the relatedness among winners was greater than among losers, it is likely that the phylogenetic divergence gradually reduces and the relatedness increases, resulting in impoverished forests with uncertain ability to provide ecosystem services such as carbon storage and pest control. This environmental cost should be taken into account to align urban sprawl with biodiversity conservation.     

The Structure of the Chinese Banking System and Credit Access Problems for SMEs

This paper examines the structure and the main characteristics of the Chinese banking industry. In particular, the paper analyses the problematic aspects of credit relations of small and medium enterprises (SMEs). The SMEs are facing several problems in accessing the bank loans market, dominated by the political and contractual weight of state-owned enterprises. However, some recent reforms have improved the situation, a fundamental condition for additional positive results. Nevertheless, further and more pervasive modernization efforts are needed to consolidate these results and to develop the relationships between banks and SMEs.

Stock Exchange Markets in Hong Kong: Structure and Main Problems

With reference to a previous analysis of the characteristics and morphology of the stock markets of Mainland China (Shanghai and Shenzhen), the study aims at completing the overview of the main Asian stock exchanges (excluding Japan), by examining the Hong Kong stock exchange. After a review of the main literature, the paper considers the historical-legislative process that has defined the current organizational-functional structure of the market. The analysis also shows the main statistical data of the market (number of listed companies, trading volume, performance of the main indices, etc.). For every considered phenomenon, the study suggests plausible explanations. The paper also provides further considerations about the main issues of the market, through a comparison with the stock exchanges of Mainland China.     

The Chinese Banking System: Economic Performance and Prospects for Future Development

This paper examines the main characteristics of the Chinese banking industry. In particular, it analyses the main performance indicators of the system together with some prospects of future development. The paper also considers the problems related to high levels of non-performing loans and the internationalization paths of the Chinese banking market. In spite of some recent reforms, further legislative improvements are required to develop the system and to allow a gradual opening to foreign competition.

Civil Society and Social Innovation in Public Arenas in Brazil: Trajectory and Experience of the Movement Against Electoral Corruption (MCCE)

In recent decades, the Brazilian Movement Against Electoral Corruption (MCCE) has been promoting social innovation in the public sphere, which led to mobilization towards the creation of two popular initiatives in Brazil: the “Law Against Vote-Buying” (Law 9840/1999) and the “Clean Record Law” (Complementary Law 135/2010). This paper explores how the collectives of MCCE engage in social innovation in the public arena of electoral corruption in Brazil. The analysis shows social innovation as a driving force of social change promoted by the association of a multitude of actor networks both in the long term and at the interface of macro and microscales of social reality. Therefore, social innovation in the Brazilian electoral corruption arena occurs simultaneously as a process and an outcome produced by the collective actions of different public groups that can reflect, organize and reform a cause, manage trial situations and create new solutions for this public problem.     

Stock Exchange Markets in China: Structure and Main Problems

The capital market of Mainland China is fragmented into different stock exchanges, each one with its own peculiarities. After a review of the main literature, the paper aims at deepening their characteristics, by taking into account their specific regulation. The current analysis also shows the main statistical data in terms of size, traded volumes, number of listed companies, types of traded products of the different stock exchanges. For every phenomenon considered, the study suggests plausible explanations. The paper also provides further considerations about the main problems of alignment with the international standards.     

Food‐Retail Development and the Myth of Everyday Low Prices: The Case of Brazil

This article analyses the changes in Brazilian food retailing by investigating the co‐existence of, and the pricing variation across, large supermarket chains and small independent supermarkets. It uses cointegration tests to show that, despite the widespread belief that small supermarkets are inefficient and charge higher prices, they in fact charge lower prices. Accordingly, in contrast to the prevailing literature on food‐retail development, competition in food retail is complex and cannot be described as a simple Darwinian process of market concentration. The article explores the survival of small retail and its consequences for the current discussion on modern food retail in developing countries.     

The International Evolution of Italian and Chinese Districts: What Role for Lead Firms?

The paper stresses how Italian and Chinese small and medium enterprises (SMEs) internationalize according to different approaches. Indeed, in the former case firms may move abroad because they follow the so-called lead firms that act as a meta-national body, whereas in the latter case SMEs are committed to exports and/or FDIs through a thick and wide web of ethnic networks. These are based on factors such as embeddedness and social capital as well as other cultural determinants.