(Interstate) banking and (interstate) trade: Does real integration follow financial integration?


Journal of Financial Economics

avril 2012, vol. 104, n°1, pp.89-117

Départements : Economie et Sciences de la décision, GREGHEC (CNRS), Finance

Mots clés : Trade; Banking deregulation; Finance'growth nexus

We examine whether financial sector integration leads to real sector integration through trade. Our conjecture is that financial sector integration between two regions leads to higher trade flows between them. In our stylized model, this happens because banks with presence in the two regions are better able to assess risks and charge the appropriate premiums for trade-related projects pertinent for the two markets; whereas the same banks charge higher average interest rates for projects that involve trade to other markets from which they are absent. We use the deregulation of the inter-state banking in the U.S. as a natural experiment to test the implication of our theory model with the state-level Commodity Flow Survey data. Our empirical evidence, based on difference-in-difference and GMM2S-IV estimates, indicates that there is a trade channel associated with the finance-growth nexus: the trade share of state-pairs that have opened their banking market to each other's financial institutions increases by 9.2% relative to the trade shares of state-pairs that did not. Looking at actual entry data, we estimate that bank entry within a trading pair increases trade in this pair by 54% relative to those that do not have such a bank link. This is probably the lower bound estimate for international trade barriers stemming from the lack of a unified banking system.

A generalized single product and single period problem with nonlinear parameters

K. Luo, L. KERBACHE, M. Menezes, C. VAN DELFT

International Transactions in Operational Research

mai 2012, vol. 19, n°3, pp.421-433

Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

Mots clés : Optimization, Perishable items, Production, Supply chain management

In this paper, we extend the study of the classical single-period newsboy inventory problem by considering Q1 costs that are non-linear functions of the decision variable. We assume that the demand probability density function is known to the decision maker.We prove that, under some much more relaxed conditions, the total expected profit function remains concave and classical optimization methods can thus be used to get the global optimal solution. After that, we provide numerical examples for illustrative purpose

A Heterogeneous Bayesian Regression Model for Cross-sectional Data Involving a Single Observation per Response Unit

D. K. H. Fong, P. EBBES, W. DeSarbo


avril 2012, vol. 77, n°2, pp.293-314

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Bayesian estimation, Cross-sectional analysis, Heterogeneity, Consumer psychology

pas sous affiliation HECAbstract: Multiple regression is frequently used across the various social sciences to analyze cross-sectional data. However, it can often times be challenging to justify the assumption of common regression coefficients across all respondents. This manuscript presents a heterogeneous Bayesian regression model that enables the estimation of individual-level-regression coefficients in cross-sectional data involving a single observation per response unit. A Gibbs sampling algorithm is developed to implement the proposed Bayesian methodology. A Monte Carlo simulation study is constructed to assess the performance of the proposed methodology across a number of experimental factors. We then apply the proposed method to analyze data collected from a consumer psychology study that examines the differential importance of price and quality in determining perceived value evaluations.

A Petri Net Approach to Mediation-aided Composition of Web Services


IEEE Transactions on Automation Science and Engineering

2012, vol. 9, n°2, pp.429-435

Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

Advancing strategy and organization research in concert: Towards an integrated model?


Strategic Organization

août 2012, vol. 10, n°3, pp.297-303

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : BOUNDED rationality *RATIONAL choice theory *STRATEGIC planning *ORGANIZATIONAL research *ORGANIZATIONAL sociology

The article discusses the impact of combining institutional and strategic research. The two type of research share common assumptions, which is the locally bounded rationality of agents. Despite the development seen in strategy research over the years, it still suffers from two shortcomings which include difficulties working with macro-dynamics. The author concludes that commonalities seen in both research types could find a resolution in other paradigm

An Empirical Investigation of Interorganizational Opportunism and Contracting Mechanisms

F. Lumineau, B. QUÉLIN

Strategic Organization

février 2012, vol. 10, n°1, pp.55-84

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : Formal contract, Legal fees, Opportunism, Relational contract, Vertical relationship

This study investigates contracting mechanisms in situations of opportunistic disputes between organizations. The authors specifically explore the relationships between the formal versus informal nature of opportunism and the formal versus informal nature of contractual governance. They use a unique data set of 102 buyer–supplier disputes to explore in depth different types of opportunism – that is, strong form versus weak form opportunism – and different types of contracting mechanisms – that is, the controlling and coordinating functions of formal contracts and the cooperative and competitive sides of relational contracts. The authors’ detailed empirical analysis suggests distinct relationships between the different contracting mechanisms, the different types of opportunism, and the level of legal fees necessary to deal with the dispute. From these findings the authors derive implications for research on the role of contractual mechanisms in dealing with interorganizational opportunism

An Inductive Typology of Auditing Research

C. LESAGE, H. Wechtler

Contemporary Accounting Research

été 2012, vol. 29, n°2, pp.487-504

Départements : Comptabilité et Contrôle de Gestion, GREGHEC (CNRS)

accepté le 9 mai 2011This paper aims to build a typology of auditing research topics. As research in auditing has grown dramatically over the past few decades, it has explored increasingly diverse research questions, raising the need for a clear overall picture of the field. Typologies have already been developed and used by researchers to analyze trends or compare research output in various contexts. However, the existing classifications are limited in scope and use a predefined structure generally grounded in a practitioner's approach, which may for instance underestimate economics-centered research. We develop an inductive typology based on content analysis of 3,143 abstracts from 25 academic journals, from their year of creation up to the year 2005. This inductive typology extends and updates previously published classifications, providing researchers with a clear picture of how the academic literature in auditing has grown and evolved in its topical coverage. In particular, this new typology enables us 1) to highlight three key periods (education, statistics, corporate governance) since 1926; 2) to identify 16 major themes in auditing research; 3) to stress their relative importance and patterns of change; and 4) to analyze the contribution of the leading journals.

Assesing the role of context in traffic light violations


Economics Bulletin

décembre 2012, vol. 32, n°4, pp.3386-3396

Départements : Economie et Sciences de la décision, GREGHEC (CNRS)

Bound and Collapse Bayesian Reject Inference for Credit Scoring

G. Chen, T. B. ASTEBRO

Journal of the Operational Research Society

octobre 2012, vol. 63, n°10, pp.1374-1387

Départements : Stratégie et Politique d’Entreprise, GREGHEC (CNRS)

Mots clés : Statistics, Credit scoring, Bayesian, Reject inference, Missing data

Reject inference is a method for inferring how a rejected credit applicant would have behaved had credit been granted. Credit-quality data on rejected applicants are usually missing not at random (MNAR). In order to infer credit-quality data MNAR, we propose a flexible method to generate the probability of missingness within a model-based bound and collapse Bayesian technique. We tested the method's performance relative to traditional reject-inference methods using real data. Results show that our method improves the classification power of credit scoring models under MNAR conditions.

Cognitive Absorption and Trust for Workplace Collaboration in Virtual Worlds: An Information Processing Decision Making Perspective

S. C. SRIVASTAVA, S. Chandra, Y-L. Theng

Journal of the Association for Information Systems (JAIS)

octobre 2012, vol. 13, n°10, pp.797-835

Départements : Informations Systems and Operations Management, GREGHEC (CNRS)

Virtual worlds (VWs) are media-rich cognitively engaging technologies that geographically dispersed organizations can use as a cost effective workplace collaboration tool. Using an information processing decision making perspective and building on unique characteristics of VWs, this paper proposes a nomological net for adaptive use intention (AUI) of VWs for workplace collaborations. AUI implies intention to use a technology in a setting different from the one for which it was initially designed. We study the AUI of VWs as a workplace collaboration tool which were originally conceived as recreational gaming platforms. Decision-making literature directs us to reduction of perceived cognitive burden and minimization of risk as the two key motivations for VWs' AUI. Building on these motivations, the paper identifies cognitive absorption and user trust in VWs as the mechanisms leading to individual-level AUI decision. Drawing on social cognitive theory and literature on trust, the proposed model not only re-specifies the concept of cognitive absorption in the context of VWs but also relates it to the level of trust and usage intention for VWs. We empirically tested the proposed model via data collected from 197 VW users in Singapore. Results demonstrate the significant roles that cognitive absorption' and user trust play in VW's usage as a collaboration tool. Further, through a series of post-hoc analyses, we demonstrate the imperative need for considering both cognitive absorption and user trust together in the proposed research model for theoretical parsimony. We also discuss implications for research and practice emerging out of this study.