Introduction to Global Law, Legal Indicators and Legal Pragmatism


Journal of Legal Pluralism and Unofficial Law

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Départements : Droit et fiscalité

Life-Cycle Asset Allocation with Ambiguity Aversion and Learning


Journal of Financial and Quantitative Analysis

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Départements : Finance, GREGHEC (CNRS)

Marking to Market and Inefficient Investment Decisions


Management Science

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Départements : Finance

Mots clés : Marking to Market, Investment Decisions, Reputation, Agency Problem

We examine how mark-to-market accounting affects the investment decisions of managers with reputation concerns. Reporting the current market value of a firm's assets can help mitigate agency problems because it provides outsiders (e.g., shareholders) with new information against which the management's decisions can be evaluated. However, the fact that the assets' market value is informative can also have a negative side effect: Managers may shy away from investments that indicate conflicting private information and would damage their reputation. This effect can lead to inefficient investment decisions and make marking to market less desirable when market prices are more informative

NGOs and the Creation of Value in Supply Chains


Strategic Management Journal

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

Mots clés : NGO, Non-Governmental Organizations, Nonprofit, Firm-NGO collaboration, Value creation

Research abstractFirms and NGOs often collaborate to establish new supply chains. With a formal model, we analyze how NGOs can alleviate market failures and improve supplier economic inclusion while strategically interacting with firms. We account for the specific goals of the NGO and the need to induce collaboration between firms and their suppliers. The analysis reveals a "valley of disappointment", when NGO efforts benefit all actors but only marginally the firm. We also show that more powerful firms might prefer to internalize NGO functions, while firms with lower bargaining power and higher investment requirements are better off collaborating with NGOs. Finally, we study NGOs-firms matching patterns and find that firms with higher bargaining power match with NGOs holding stronger capabilities.Managerial abstractThis paper analyzes interactions between firms and NGOs aiming to improve the economic inclusion of suppliers or to promote the adoption of specific (e.g., sustainable) practices. For firm executives, this study shows the constraints and benefits associated with working with NGOs, the conditions under which integration of NGO functions is preferable, as well as the types of NGOs that offer better prospects for a successful collaboration. For NGO executives, it highlights the need to provide enough economic incentives to firms and suppliers alike to ensure their collaboration and the tradeoffs associated with this constraint, in particular if NGO capabilities are limited. Overall, the study provides a comprehensive understanding of how NGO activities can influence value creation in a vertical value chain.

Non-additivity in accounting valuation: Theory and applications



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

Mots clés : Choquet capacities, Goodwill, Growth options, Non-additive accounting-based valuation, Productive efficiency, Synergies

This paper has three objectives. First, to introduce a theoretical solution to the issue of non-additivity between assets in place, relying on an accounting-based valuation approach. Second, to explain how such an approach can be implemented empirically by measuring synergies between assets. Third, to present the properties of this non-additive valuation technique. We use Choquet capacities, that is, non-additive aggregation operators, to measure the interactions between assets and apply our methodology to a sample of US firms from the capital goods industry. To operationalize our approach we examine the relationships between synergies-captured by Choquet capacities-and the market-to-book ratio (proxying for growth options), and show how interactions between assets are consistently linked to a firm's market-to-book ratio. We also measure firm-specific productive efficiency relative to the industry and firm size. For large firms, efficiency, as defined by our approach, is positively associated with higher future operating cash flows. For small firms, efficiency is positively associated with higher future sales growth. We document that the non-additive approach appears to be better able to identify expected relationships between efficiency and future performance than a simpler approach based on the market-to-book ratio. © 2018 Accounting Foundation, The University of Sydney

Perception‐Theoretic Foundations of Weighted Utilitarianism


Economic Journal

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

We provide a microfoundation for a weighted utilitarian social welfare function that reflects common moral intuitions about interpersonal comparisons of utilities. If utility is only ordinal in the usual microeconomic sense, interpersonal comparisons are meaningless. Nonetheless, economics often adopts utilitarian welfare functions, assuming that comparable utility functions can be calibrated using information beyond consumer choice data. We show that consumer choice data alone are sufficient. As suggested by Edgeworth (1881), just noticeable differences provide a common unit of measure for interpersonal comparisons of utility differences. We prove that a simple monotonicity axiom implies a weighted utilitarian aggregation of preferences, with weights proportional to individual jnd's. This article is protected by copyright. All rights reserved

Pitfalls in Systemic-Risk Scoring


Journal of Financial Intermediation

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Départements : Finance, GREGHEC (CNRS)

Professional equality between men and women in France: progress and hesitation


French Politics

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Départements : Management et Ressources Humaines

Mots clés : Justifications for equality policies, Professional equality and intersectional approaches, Professional-equality policies and collective bargaining, Professional-equality policy, State feminism

The purpose of this article is to present and analyze both the progress achieved and the difficulties for professional-equality policies in France. After presenting the development of the legislative framework, both in terms of equality between men and women and in terms of collective bargaining for professional-equality agreements, the article focuses on the ambiguities and difficulties that remain in implementing professional-equality policy. These concern the diversity of strategies for implementing professional equality, debates about the various justifications for these approaches, the effects of recent evolutions in collective-bargaining laws in France and, finally, the low level of judicial activism in fighting discrimination. The last section of the article focuses on key concerns for the future of these policies

Re-Thinking the CSP-CFP Linkage: Analyzing the Mechanisms Involved in Translating Socially-Responsible Behavior to Financial Performance


Advances in Strategic Management

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

Reinforcing The Public Law Taboo: A Note on Nikiforidis v. Hellenic Republic


European Law Review

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Départements : Droit et fiscalité, GREGHEC (CNRS)

Mots clés : mandatory rules, EU private international law, Rome I Convention, Rome I Regulation

This article hinges on the preliminary ruling rendered by the Court of Justice of the European Union (ECJ) (Grand Chamber) on 18 October 2016 and the related judgment of the German Federal Labour Court of 26 April 2017 in the Nikiforidis case to investigate an area of private international law that is undergoing a substantial development: overriding mandatory provisions. In Nikiforidis, the ECJ excluded that two Greek laws cutting the salary of public employees may be enforced against a teacher working in Germany for the Greek government under an employment contract governed by German law. The question addressed to ECJ was whether said laws were “overriding mandatory provisions” according to the Rome I Regulation. The court denied it, and left to the referring court to determine whether they could nevertheless operate “as matter of fact” under the governing law. This article explains how the ECJ’s conclusion has broader implications by regulating third countries’ interference in international business transactions. Starting with an analysis of the case, the article examines the history and nature of overriding mandatory provisions under EU private international law and argues that the solution embraced by the ECJ leaves room to uncertainty and unpredictability in the operation of foreign mandatory provisions