Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adoption


Journal of Accounting and Public Policy

novembre 2008, vol. 27, n°6, pp.480-494

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

In this paper, we analyze the effect of the mandatory introduction of IFRS standards on earnings quality, and more precisely on earnings management. We concentrate on three IFRS first-time adopter countries, namely Australia, France, and the UK. We find that the pervasiveness of earnings management did not decline after the introduction of IFRS, and in fact increased in France. Our findings confirm that sharing rules is not a sufficient condition to create a common business language, and that management incentives and national institutional factors play an important role in framing financial reporting characteristics. We suggest that the IASB, the SEC and the European Commission should now devote their efforts to harmonizing incentives and institutional factors rather than harmonizing accounting standards.IFRS Earnings management Thresholds

Do Banks Overstate their Value-at-Risk ?

C. PERIGNON, Z. Deng, Z. Wang

Journal of Banking and Finance

mai 2008, vol. 32, n°5, pp.783-794

Départements : Finance, GREGHEC (CNRS)

Mots clés : Value-at-Risk (VaR), Capital requirement, Backtesting

This paper is the first empirical study of banks’ risk management systems based on non-anonymous daily Value-at-Risk (VaR) and profit-and-loss data. Using actual data from the six largest Canadian commercial banks, we uncover evidence that banks exhibit a systematic excess of conservatism in their VaR estimates. The data used in this paper have been extracted from the banks’ annual reports using an innovative Matlab-based data extraction method. Out of the 7354 trading days analyzed in this study, there are only two exceptions, i.e. days when the actual loss exceeds the disclosed VaR, whereas the expected number of exceptions with a 99% VaR is 74. For each sample bank, we extract from historical VaRs a risk-overstatement coefficient, ranging between 19 and 79%. We attribute VaR overstatement to several factors, including extreme cautiousness and underestimation of diversification effects when aggregating VaRs across business lines and/or risk categories. We also discuss the economic and social cost of reporting inflated VaRs

Do Politics Shape Buyout Performance?


Harvard Business Review

novembre 2008, vol. 86, n°11, pp.26-27

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

This paper explores the relationship between dominant local political views and the volume and performance of leveraged buyout investments. We analyze a sample of 10,746 buyout investments in 4,633 distinct target companies made by 2,396 different funds managed by 1,300 different PE Firms from 1980 to 2003 and find strong support for the hypothesis that 'Republican' political views are positively related to both the volume of buyout activity and different measures of performance for these buyouts. Furthermore we find that situations in which the dominant political view recently shifted from 'Republican' to 'Democratic' lead to particularly low levels of activity and performance. Similarly, in cases in which the dominant political shifted from 'Democratic' to 'Republican' shortly after the focal point in time, we observe a particularly high level of activity and performance.

Do science and money go together ? The case of French Biotech industry

R. DURAND, O. Bruyaka, V. Mangematin

Strategic Management Journal

décembre 2008, vol. 29, n°12, pp.1281-1299

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

Mots clés : Rent generation, Rent appropriation, Value drivers, Biotech industry, Developing technological applications, entering exploitation alliances, and choosing between research- or service-focused strategic orientations are decisions that high-tech firms must manage concurrently.

This article explores systematically the contrasting effects of these strategic determinants on rent generation and rent appropriation using the entire population of French biotech firms (1994-2002). Findings indicate that science and money do not unconditionally go together-the direct relationship between rent-accruing resources (e.g., patents or articles) and rent appropriation varies depending on the type of resources and the strategic orientation. Moreover, the effects of strategic determinants differ for rent generation vs. rent appropriation: 1) technological application diversity undermines a firm's capacity to appropriate rents-in particular for research-oriented firms; 2) exploitation alliances favor rent generation but hinder rent appropriation; 3) service-oriented firms exhibit significantly better performance than research-oriented firms. Such evidence challenges the emergence in the biotechnology industry of a one-best strategic trajectory, as represented by research-intensive start-ups funded by private money engaged in publishing and patenting races

Du sens du client au marketing de la permission et du désir


Revue Banque

1er juin 2008

Départements : Marketing

Dans un contexte dominé par l'émergence des nouvelles technologies de l'information et de la communication, un marketing du désir et de la permission doit voir le jour pour faire face à la mutation du comportement du consommateur.

Editorial Insurance and Adaptation to Climate Change

P. PICARD, S. Chemarin

Geneva Papers for Risk and Insurance: Issues and Practice

janvier 2008, vol. 33, n°1, pp.66-70

Départements : Economie et Sciences de la décision

The article discusses various reports published within the issue, including one by Arthur Charpentier examining the potential impacts that climate change will have on insurance and reinsurance markets, and an article by Kim Clemo examining how insurance companies can help small business adapt to climatic changes.

Effective Strategies for Internal Outsourcing and Offshoring of Business Services: An Empirical Investigation

Z. Aksin, A. MASINI

Journal of Operations Management

mars 2008, vol. 26, n°9, pp.239-256

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

Mots clés : Shared services; Offshoring; Outsourcing; Strategy; Empirical analysis

The growing pressure to reduce costs and improve efficiency induces many organizations to undertake shared services initiatives. This consolidation and streamlining of common business functions is also known as insourcing, in-house services, business services, or staff services. While adoption of a shared service structure is viewed by many as an appropriate strategy to pursue, most companies still struggle to devise optimal strategies and to generate adequate returns on investments for their projects, because none of the approaches that are commonly adopted is recognized as universally effective.This paper builds upon the “structure-environment” perspective to uncover configurations of shared services organizations and to explain why and under what circumstances some of these configurations exhibit superior results. The conceptual model proposed challenges the notion of “best practice” and suggests that the effectiveness of a shared services project depends on the degree of complementarity between the “needs” arising from the environment in which a company operates and the specific capabilities developed to address these needs. The theoretical findings are validated empirically through the analysis of a large sample of European firms that recently undertook initiatives in this domain. Four dominant configurations of shared service organizations are uncovered, and their relationship to performance is explored.

Emprise et dégagement dans les organisations et les relations de travail


Revue de Psychothérapie Psychanalytique de Groupes

2008, vol. 51, n°2, pp.15-32

Départements : Management et Ressources Humaines

Mots clés : Emprise, Perversion, Négatif, Psychologisation, Espaces transitionnels, Auto-objectivation

Cet article s'appuie sur une approche intersubjective de la notion d'emprise et vise, dans un premier temps, à en spécifier les diverses formes, plus particulièrement à l''uvre dans les organisations et les relations de travail aujourd'hui. Après avoir développé sept des modalités d'emprise actuelle visant la réduction de l'altérité, la neutralisation du désir d'autrui et la réification du sujet, l'auteur montre, à travers plusieurs exemples, comment la relation d'emprise est contrecarrée par une certaine résistance du réel, des comportements stratégiques de la part des salariés, l'ironie et les espaces transitionnels, spontanés ou construits qui permettent à la fois le démasquage des processus pervers et le maintien du libre-arbitre. Mots-clésEmprise, perversion, négatif, psychologisation, espaces transitionnels, auto-objectivation.

Encouraging cooperation: revisiting solidarity and commitment effects in prisoners' dilemma games

M. MULFORD, H. Svedsäter, J. Jackson

Journal of Applied Social Psychology

2008, vol. 38, n°12, pp.2964-2989

Enhancing Discontinuous Innovation through Knowledge Combination: The Case of an Exploratory Unit within an Established Automotive Firm


Creativity and Innovation Management

juin 2008, vol. 17, n°2, pp.127-135

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

The literature on innovation management underlines the necessity to separate the exploratory unit that builds new businesses on the basis of radical innovation from the exploitation unit that emphasizes continuous improvement. However, little research focuses on the exploratory unit in itself: the very nature of its activity, its composition, etc. The aim of this article is to analyse the exploratory unit in mobilizing results highlighted by research on organizational creativity. It is argued that in order to enhance discontinuous innovation, knowledge combination should occur and be facilitated in the exploratory unit. Hence, the research question is what organizational design at a fine-grained level and creativity processes are likely to enhance knowledge combination and thus discontinuous innovation? Based on an in-depth study of an exploratory unit created in an established multidivisional firm pursuing the development of discontinuous innovation and which generated several actual breakthroughs, we highlighted four key factors that enhanced knowledge combination: (i) the definition of the scope of the unit, (ii) the composition of the unit and the dual roles of its members, (iii) the boundary objects that supported the interactions between these members during the creativity process, and (iv) the arenas where new knowledge was further created