Articles

Financial Transaction Taxes, Market Composition, and Liquidity

J. E. COLLIARD, Peter HOFFMANN

The Journal of Finance

décembre 2017, vol. 72, n°6, pp.2685–2716

Départements : Finance, GREGHEC (CNRS)

Mots clés : Financial transaction tax, institutional trading, liquidity, high-frequency trading

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2215788


We use the introduction of a financial transaction tax (FTT) in France in 2012 to test competing theories on the impact of FTTs. We find no support for the idea that an FTT improves market quality by affecting the composition of trading volume. Instead, our results are in line with the idea that a lower trading volume reduces liquidity, and thereby market quality. Consistent with theories of asset pricing under transaction costs, we document a shift in security holdings from short-term to long-term institutional investors. More generally, our findings confirm that moderate aggregate effects on market quality can mask large adjustments made by individual market participants

France’s Commercial courts: a good example of the administration of justice by ordinary citizens

N. STOLOWY, M. BROCHIER

Journal of Business Law

2017, vol. 1, pp.1-22

Départements : Droit et fiscalité, GREGHEC (CNRS)

Mots clés : Accessto justice; Commercial law; Courts' powers and duties;France; Judges; Legal history

https://1.next.westlaw.com/Document/I23461760B0A411E6B1DFACFF35803E0B/View/FullText.html?navigationPath=Search%2Fv1%2Fresults%2Fnavigation%2Fi0ad6ad3b0000015fc9730919545f7414%3FNav%3DINTERNATIONAL-ANALYTICAL%26fragmentIdentifier%3DI23461760B0A411E6B1DFACF


Commercial courts occupy a highly specific position in the French judiciary landscape, since their judges are elected.French commercial court judges are not members of the legal professions but business executives and tradespeoplechosen by their peers. This encourages a pragmatic view that takes into account the economic constraints faced by companies. InFrance, certain courts of first instance,such asthe commercial courts, delegate the function of judgment to ordinary citizens, whereas in most courts of first instance, and the appeal courts Cour d’appel and Cour de cassation, only full-time professional magistrates can rule on the cases brought before the court

From Categories to Categorization: A Social Perspective on Market Categorization

R. DURAND, N. GRANQVIST, A. TYLLSTRÖM

Research in the Sociology of Organizations

2017, vol. 51, pp.3-30

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

Mots clés : Category, categorization, organization, strategy, cognition, social process

https://www.emeraldinsight.com/doi/full/10.1108/S0733-558X20170000051011


The popularity of research into categories has grown in recent decades and shows no sign of abating. This introductory article takes stock of the research into two facets of categorization, addressing it both as a cognitive and a social process. We advocate a rebalance toward the social process of categorization, paying more heed to the entity to be categorized, the actors involved, their acts, and the context and timing, which informs these activities. We summarize the contributions to the volume in relation to these dimensions and briefly discuss avenues for future research

Gross, net, and new job creation by entrepreneurs

T. ASTEBRO, J. TAG

Journal of Business Venturing Insights

novembre 2017, vol. 8, pp.64-70

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

Mots clés : EntrepreneurshipJob creationIncorporationOccupational choiceSelf-employmentSole proprietorship

https://www.sciencedirect.com/science/article/pii/S2352673417300525


Using a dataset with over 24 million year-employment observations and the universe of more than 230,000 entries into entrepreneurship in one economy we analyze the gross (including the founders), net (excluding the founders), and new (jobs to the former unemployed or those outside the labor force) job creation by entrepreneurs two and six years after start-up. These novel measures of job creation show that the average entrepreneur does not create any jobs for any other than him/her-self, and typically arrives from having another job. Thus, short term job creation by entrepreneurs involves a reshuffling of jobs from older to new firms rather than creating new jobs

Health Cost Risk: A Potential Solution to the Annuity Puzzle

K. PEIJNENBURG, T. NIJMAN, B. J. M. WERKER

Economic Journal

aout 2017, vol. 127, n°603, pp.1598–1625

Départements : Finance, GREGHEC (CNRS)

Mots clés : Life-cycle portfolio choice;retirement;post-retirement investment

http://onlinelibrary.wiley.com/doi/10.1111/ecoj.12354/abstract


We find that health cost risk lowers optimal annuity demand at retirement. If medical expenses can be sizeable early in retirement, full annuitisation at retirement is no longer optimal because agents do not have enough time to build a liquid wealth buffer. Furthermore, large deviations from optimal annuitisation levels lead to small utility differences. Our results suggest that health cost risk can explain a large proportion of empirically observed annuity choices. Finally, allowing additional annuitisation after retirement results in welfare gains of at most 2.5% when facing health cost risk, and negligible gains without this risk

Heterogeneous social motives and interactions: The three predictable paths of capability development: Heterogeneity in capability development paths

F. BRIDOUX, R. COEURDEROY, R. DURAND

Strategic Management Journal

septembre 2017, vol. 38, n°9, pp.1755-1773

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

Mots clés : deliberate capability development; motiva-tional microfoundations; social interactions; businessprocess performance; multilevel

http://onlinelibrary.wiley.com/doi/10.1002/smj.2605/abstract


Research summary: Limited attention has been paid to the crucial role of individuals' motivation and social interactions in capability development. Building on literature in social psychology and behavioral economics that links heterogeneity in individual social motives to social interactions, we explain how the variation, selection, and retention processes underlying a group's deliberate capability development are affected by the composition of the group in terms of individuals' social motives in interplay with the organizational-level motivational levers designed by managers. Our multilevel theoretical model suggests that individual-level heterogeneity leads to the development of capabilities along different paths. For practice, this implies that, according to the composition of the group in terms of social motives, capabilities are more or less technically and evolutionary adequate and a source of business process performance.Managerial summary:We propose that when a group of employees engages in developing one of the firm's capabilities, capability development will follow a different path according to what motivates most of the employees composing the group. We identify and discuss three paths. Two of these paths (convergence and congruence) can help improve business process performance in a stable environment, the third one (open-ended) in a dynamic environment. Our work invites managers to not only think in terms of more or less capability development, but also in terms of capability development path(s): the path(s) in which groups in the firm are currently engaged and the one(s) that are desirable given the firm's objectives and the nature of the environment(s) the firm faces in deploying its business processes

Housing Collateral and Entrepreneurship

Martin SCHMALZ, David SRAER, D. THESMAR

The Journal of Finance

février 2017, vol. 72, n°1, pp.99-132

Départements : Finance

http://onlinelibrary.wiley.com/doi/10.1111/jofi.12468/pdf


We show that collateral constraints restrict firm entry and postentry growth, using French administrative data and cross-sectional variation in local house-price appreciation as shocks to collateral values. We control for local demand shocks by comparing treated homeowners to controls in the same region that do not experience collateral shocks: renters and homeowners with an outstanding mortgage, who (in France) cannot take out a second mortgage. In both comparisons, an increase in collateral value leads to a higher probability of becoming an entrepreneur. Conditional on entry, treated entrepreneurs use more debt, start larger firms, and remain larger in the long run.

Incorporating hidden costs of annoying ads in display auctions

V. STOURM, Eric BAX

International Journal of Research in Marketing

septembre 2017, vol. 34, n°3, pp.622-640

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Online advertising, Pricing, Mechanism design

http://www.sciencedirect.com/science/article/pii/S0167811617300071


Media publisher platforms often face an effectiveness-nuisance tradeoff: more annoying ads can be more effective for some advertisers because of their ability to attract attention, but after attracting viewers’ attention, their nuisance to viewers can decrease engagement with the platform over time. With the rise of mobile technology and ad blockers, many platforms are becoming increasingly concerned about how to improve monetization through digital ads while improving viewer experience.We study an online ad auction mechanism that incorporates a charge for ad impact on user experience as a criterion for ad selection and pricing. Like a Pigovian tax, the charge causes advertisers to internalize the hidden cost of foregone future platform revenue due to ad impact on user experience. Over time, the mechanism provides an incentive for advertisers to develop ads that are effective while offering viewers a more pleasant experience. We show that adopting the mechanism can simultaneously benefit the publisher, advertisers, and viewers, even in the short term.Incorporating a charge for ad impact can increase expected advertiser profits if enough advertisers compete. A stronger effectiveness-nuisance tradeoff, meaning that ad effectiveness is more strongly associated with negative impact on user experience, increases the amount of competition required for the mechanism to benefit advertisers. The findings suggest that the mechanism can benefit the marketplace for ad slots that consistently attract many advertisers

Internal Audit Effectiveness: Multiple Case Study Research Involving Chief Audit Executives and Senior Management

R. LENZ, G. SARENS, F. HOOS

The EDP Audit, Control, and Security Newsletter

2017, vol. 55, n°1, pp.1-17

Départements : Comptabilité et Contrôle de Gestion

https://www.tandfonline.com/doi/abs/10.1080/07366981.2017.1278980


The focus of this study is the relationship between chief audit executives (CAEs) and senior management (SM) and its relationship with internal audit (IA) effectiveness. The study reveals differences between more and less effective IA functions and offers explanations by studying organizational, personal, and interpersonal factors within the German corporate governance context. The findings show that the pattern of interaction between CAEs and SM is a key determinant of IA effectiveness. This study highlights the danger of viewing customer satisfaction as the key measure of IA effectiveness since in practice expectations can vary significantly and as sometimes very little may be demanded. Moreover, CAEs typically adjust to expectations, upward and downward. CAEs can drive the agenda as well. When it comes to personality factors, “Fingerspitzengefühl” and swimming in the organization characterize the successful internal auditor. IA designations for CAEs were not found to be of added value. At the organizational level, the findings show that companies that are considered as “hidden champions” demand and benefit from effective IA practices

Inventory allocation models for a two-stage, twoproduct, capacitated supplier and retailer problem with random demand

K. LUO, R. BOLLAPRAGADA, L. KERBACHE

International Journal of Production Economics

mai 2017, vol. 187, pp.168-181

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

Mots clés : supply chain management, inventory management, capacity allocation, heuristic methods

https://www.sciencedirect.com/science/article/pii/S0925527316303930


The objective of this research is to develop an optimal inventory allocation methodology for a supply chain consisting of a capacitated retailer with limited shelf space, and two unreliable capacitated suppliers in an uncertain environment. We develop conceptual and analytical models that provide allocation preferences between shelf-space and warehouse in both deterministic and stochastic demand cases, and develop managerial insights based on them. For each case, we provide both a closed-form solution and a heuristic method, and illustrate the bounds on the optimal solution. Further, we show that the cost function is L-convex in some cases. Finally, we prove that the expected profit decreases as the variance of demand increases


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