Articles

Strategic Default, Debt Structure, and Stock Returns

P. VALTA

Journal of Financial and Quantitative Analysis

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Départements : Finance

Mots clés : Debt Structure, Debt Renegotiation, Stock Returns

http://dx.doi.org/10.2139/ssrn.1101534


This paper theoretically and empirically investigates how the debt structure and the strategic interaction between shareholders and debt holders in the event of default affect expected stock returns. The model predicts that expected stock returns are higher for firms that face high debt renegotiation difficulties and that have a large fraction of secured or convertible debt. Using a large sample of publicly traded US firms between 1985 and 2012, the paper presents new evidence on the link between debt structure and stock returns that is supportive of the model's predictions

Strategic Selection of Risk Models and Bank Capital Regulation

J. E. COLLIARD

Management Science

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Départements : Finance, GREGHEC (CNRS)


Temporal Discounting of Gains and Losses of Time: An Experimental Investigation

E. KEMEL, M. ABDELLAOUI, C. GUTIERREZ

Journal of Risk and Uncertainty

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


The authenticity of the museum experience in the digital age: the case of the Louvre

Y. EVRARD, A. KREBS

Journal of Cultural Economics

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Départements : Marketing

Mots clés : Art museums, Authenticity, Digital policies, Real/virtual relationship, Cultural audiences, Measures in art

https://link.springer.com/article/10.1007/s10824-017-9309-x


The technological shift of museums is extensively documented, even if research on the impact of technologies on cultural practices and social patterns at large is still lacking. As part of a research programme conducted by the Louvre and HEC Paris, the article proposes a conceptual analysis of ‘real’ (visiting the museum) and ‘virtual’ (visiting its website) experiences of museums. It contributes to the understanding of whether the two experiences are substitutes or complements using a newly created measurement scale. In addition, the article also aims at enriching the contemporary discussion on the artworks’ aura and the authenticity of the cultural experience in the digital age

The Dynamics of Financially Constrained Arbitrage

D. GROMB, D. VAYANOS

The Journal of Finance

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Départements : Finance, GREGHEC (CNRS)

Mots clés : Arbitrage, financial constraints, market segmentation, liquidity, contagion

https://onlinelibrary.wiley.com/doi/epdf/10.1111/jofi.12689


We develop a model in which financially constrained arbitrageurs exploit price discrepancies across segmented markets. We show that the dynamics of arbitrage capital are self-correcting: following a shock that depletes capital, returns increase, and this allows capital to be gradually replenished. Spreads increase more for trades with volatile fundamentals or more time to convergence. Arbitrageurs cut their positions more in those trades, except when volatility concerns the hedgeable component. Financial constraints yield a positive cross-sectional relationship between spreads/returns and betas with respect to arbitrage capital. Diversification of arbitrageurs across markets induces contagion, but generally lowers arbitrageurs’ risk and price volatility

The Effects of IFRS Adoption on Observed Earnings Smoothing Properties: The Confounding Effects of Changes in TimelyGain and Loss Recognition

V. CAPKUN, D. W. COLLINS

European Accounting Review

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

Mots clés : Earnings smoothing, Timely gain recognition, Timely loss recognition, Earnings quality

https://www.tandfonline.com/doi/full/10.1080/09638180.2018.1477610


Ball and Shivakumar [(2006), The role of accruals in asymmetrically timely gain and loss recognition. Journal of Accounting Research, 44, 207–242] show that the observed smoothness of earnings (i.e. negative contemporaneous correlation between accruals and cash flows) is the joint product of the role of accruals in smoothing out transitory fluctuations in operating cash flows (noise reduction role) and the role of accruals in providing timely recognition of economic gains and losses (contracting role). These two roles of accruals have opposite effects on earnings smoothness properties. Using a regression framework that allows us to simultaneously consider both roles, we show that failing to control for changes in timely gain and loss recognition as firms shift to IFRS can lead to erroneous inferences regarding the effects of IFRS adoption on earnings smoothness, and consequently on researcher’ conclusions about how IFRS adoption has affected accounting quality. Our results are consistent with mandatory (2005) IFRS adoption resulting in a change in the contracting role rather than the noise reduction role (or smoothness role) of accruals. A decrease in timely loss recognition, an increase in timely gain recognition, and a net decrease in asymmetric timely loss recognition are what drives the change in observed smoothness properties of earnings around mandatory IFRS adoption

The effects of investment bank rankings: Evidence from M&A league tables

F. DERRIEN, O. DESSAINT

Review of Finance

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Départements : Finance, GREGHEC (CNRS)


The Effects of Linguistic Devices on Consumer Information Processing and Persuasion: A Language Complexity × Processing Mode Framework

R. POGACAR, L. SHRUM, T. LOWREY

Journal of Consumer Psychology

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Départements : Marketing, GREGHEC (CNRS)

Mots clés : Linguistics, Attitudes and Persuasion, Automatic and Controlled Processes, Language

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3158683


People—be they politicians, marketers, job candidates, product reviewers, bloggers, or romantic interests—often use linguistic devices to persuade others, and there is a sizeable literature that has documented the effects of numerous linguistic devices. However, understanding the implications of these effects is difficult without an organizing framework. To this end, we introduce a Language Complexity × Processing Mode Framework for classifying linguisticdevices based on two continuous dimensions: language complexity, ranging from simple to complex, and processing mode, ranging from automatic to controlled. We then use the framework as a basis for reviewing and synthesizing extant research on the effects of the linguistic devices on persuasion, determining the conditions under which the effectiveness of thelinguistic devices can be maximized, and reconciling inconsistencies in prior research

The Impact of Religiosity and Culture on Salesperson Job Satisfaction and Performance

V. ONYEMAH, D. ROUZIES, D. IACOBUCCI

International Journal of Cross Cultural Management

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Départements : Marketing, GREGHEC (CNRS)


The multiplicity of performance management systems: heterogeneity in multinational corporations and management sense-making

M. EZZAMEL, D. COOPER, K. ROBSON

Contemporary Accounting Research

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Départements : Comptabilité et Contrôle de Gestion



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