By Jeffrey Knapp, UNSW Australia
Early last month, the Senate announced an inquiry with terms of reference that cover the collapse of Dick Smith Electronics.
There is a lot for senators to pore over in the float and failure of Dick Smith.
In economic theory, the failure of this Australian retailer is consistent with a dynamic economy. Businesses that do not utilise economic resources as efficiently as competitors fall by the wayside. Unfortunately, the failure is also associated with a series of ugly looking events that are inconsistent with an efficient market.
The Senate now has a good opportunity to consider issues that make Australia seem like a nasty place to invest in shares includi…
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